Nigerian Banks Re-enable Naira Cards for International Transactions After 3-Year Suspension

Nigerian banks have announced that Naira cards can now be used for international transactions, marking a significant development after a three-year suspension. This resumption comes as a relief to customers who have been unable to use their naira debit cards for global payments due to a persistent scarcity of foreign exchange (FX).

United Bank of Africa (UBA) and Wema Bank have both informed their customers about the re-enablement of international transactions on their naira debit cards. UBA stated that all Premium Naira Cards, including Gold, Platinum, and World variants, are now enabled for international transactions. This move aligns with UBA's strategic effort to provide customers with a seamless and quality banking experience, allowing them to use their Premium Naira Card for daily payments, online shopping, POS, and ATM transactions across the world with more ease and flexibility.

Wema Bank also announced that customers can now pay in dollars using their naira cards on various international platforms such as Amazon, eBay, AliExpress, Netflix, Spotify, and YouTube. This re-enablement of international transactions on naira cards reflects improved liquidity in the foreign exchange market and reduced arbitrage opportunities. Experts attribute this decision to the moderating premium on parallel market transactions and the naira’s appreciation against major currencies. Additionally, increased diaspora remittances and restored confidence in FX management by the federal government and the Central Bank of Nigeria’s new policy on non-residents have significantly contributed to this development.

Other factors that have contributed to the re-adoption of international transactions on naira cards include improved credit rating, clearance of FX backlogs, a new trading platform, increased oil prices, and bank capitalisation. These developments have created a more favourable environment for FX transactions, leading financial institutions to reactivate their naira cards for global use. High interest rates in Nigeria have also reduced speculation on FX, further supporting this move.

The reactivation of Naira cards for international transactions represents a pivotal shift for Nigerians and the economy as a whole. With this move, Nigerians can now use their Naira cards for international transactions, online shopping, and payments, making it easier to engage in global trade. This activation also boosts transactions for individuals and small businesses who rely on international transactions, providing them with greater flexibility and convenience in their financial dealings.