Three Nigerian commercial banks, Guarantee Trust Bank (GTB), United Bank for Africa (UBA) and Wema Bank, have announced the resumption of international transactions on their naira debit cards. This development comes nearly three years after most Nigerian banks suspended the service due to the country’s foreign exchange crisis.
In separate notices to customers, UBA stated that all Premium Naira Cards, including Gold, Platinum, and World variants, can now be used for payments, online shopping, ATM withdrawals, and POS transactions across the world. The bank encouraged customers to take advantage of the renewed service to enjoy more flexibility in global transactions.
Wema Bank also confirmed the resumption, informing customers that their Naira Mastercard can now be used to pay in dollars on popular international platforms such as Amazon, eBay, Netflix, Spotify, and YouTube.
Financial analysts attributed the decision to improved liquidity in the foreign exchange market and a narrowing gap between official and parallel market rates. Ayokunle Olubunmi, Head of Financial Institutions Ratings at Agusto & Co, explained that stabilising the naira has reduced arbitrage opportunities and encouraged banks to reactivate international services. Charles Sanni, CEO of Cowry Treasurers, added that restored confidence in FX management, increased diaspora remittances, the clearance of FX backlogs, and a more favourable credit rating for Nigeria have made it easier for banks to resume the service.
Between mid-2022 and early 2023, several banks, including First Bank, Zenith Bank, GTBank, and Standard Chartered, suspended international naira card services following severe dollar shortages that strained Nigeria’s economy. With this latest move by GtB, UBA and Wema Bank, more Nigerian banks are expected to gradually restore international services on naira cards as market stability improves.
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