Nigerian Banks Embrace International Transactions Again Following Improved FX Stability and Government Reforms

 

Two of Nigeria’s leading commercial banks, United Bank for Africa (UBA) and Wema Bank, have officially reactivated international transaction capabilities on their naira-denominated debit cards. The development marks a major step forward for Nigeria’s banking sector, coming after a nearly three-year halt that left millions of customers unable to make dollar-denominated purchases using their local currency cards.

Both banks made separate announcements to their customers, expressing renewed confidence in the country’s foreign exchange (FX) environment and the broader economic reforms introduced by the Central Bank of Nigeria (CBN) and federal government.

UBA, one of Africa’s foremost banking institutions, has reinstated international functionality for its Premium Naira Cards, which include the Gold, Platinum, and World variants. The bank says this decision is rooted in its strategy to elevate customer experience and simplify global payment access for Nigerians using local currency cards.

A customer notification from UBA outlined the scope of services now available. Holders of these premium cards can carry out international transactions at ATMs, point-of-sale (POS) terminals, and for online purchases across multiple platforms. This change, the bank highlighted, aims to provide greater convenience, especially for customers who prefer to transact in naira without maintaining separate domiciliary accounts.

Customers are also being encouraged to reactivate and utilize their cards if they haven’t done so in a while. UBA described the card offering as not just a tool of convenience, but also one that brings with it prestige and global access.

Wema Bank has taken a similar route. In a bold announcement, the bank informed customers that their naira Mastercards are now fully enabled for international transactions. Specifically, cardholders can now pay in dollars across popular global platforms like Amazon, eBay, AliExpress, Netflix, Spotify, and YouTube using their existing naira cards.

This new development reflects a broader shift across the Nigerian financial services sector. Several banks and fintech companies had previously suspended international payments using naira cards due to chronic FX scarcity. The problem escalated in 2022 and 2023, as Nigeria struggled with dollar shortages, leading to banks like First Bank, Guaranty Trust Bank (GTBank), Zenith Bank, and Standard Chartered suspending cross-border card transactions.

According to financial analysts, the reintroduction of these services signals a cautious but hopeful turnaround. Ayokunle Olubunmi, Head of Financial Institutions Ratings at Agusto & Co., noted that improved FX liquidity has given banks more flexibility to reintroduce cross-border services without fearing depletion of their foreign reserves. The narrowing gap between official and parallel market exchange rates has also contributed to reducing arbitrage opportunities, which previously created instability in the market.

Charles Sanni, CEO of Cowry Treasurers, provided further context. He believes that several macroeconomic factors are aligning in Nigeria’s favor. The consistent appreciation of the naira against major currencies, driven by increased diaspora remittances and policies allowing non-resident Nigerians to open local accounts, has strengthened confidence in the FX ecosystem.

Sanni also pointed to a number of positive indicators such as improved federal FX management, clearance of the CBN’s FX backlog, and better access to capital repatriation. Rising oil prices due to global geopolitical tensions, a new FX trading platform, and the recapitalization of Nigerian banks have all played a role in creating a more stable monetary environment.

This restoration of cross-border card functionality is a welcome change for Nigerians who rely on global services and e-commerce platforms. For professionals, students, and businesses that need to make frequent payments abroad, the previous restrictions created bottlenecks and encouraged the use of unofficial channels or alternative banking methods.

Digital payment providers and fintech firms like Flutterwave and Eversend also previously halted international card services, further complicating access for tech-savvy users. As traditional banks start to reverse these suspensions, it may lead to a broader trend of financial institutions restoring full service capabilities across both physical and virtual cards.

The FX crisis of 2022 to early 2023 had exposed deep vulnerabilities in Nigeria’s economy and underlined the urgency for structural reforms. The recent moves by UBA and Wema Bank suggest that confidence is returning, although experts caution that sustained progress will depend on continued policy discipline, external economic stability, and resilient fiscal management by the Nigerian government.

As the economy continues to recover, more banks are likely to follow suit in lifting restrictions on international naira card usage. The hope among stakeholders is that this signals the beginning of a long-term re-integration of Nigeria’s financial sector with global markets, reducing the need for workarounds and restoring trust in the country’s financial infrastructure.