By Toluwanimi Adejumo
In a significant development, Nigerian banks have announced the resumption of international transactions on their naira cards. United Bank for Africa (UBA), Wema Bank, and Guaranty Trust Bank (GTBank) have confirmed that their naira cards can now be used for international transactions, marking a major shift after nearly three years of suspension.
Details of the Resumption
According to the banks, the decision to resume international transactions aligns with their commitment to delivering seamless and enhanced banking services.
UBA stated that all its Premium Naira Cards, including Gold, Platinum, and World variants, are now enabled for international transactions. This means customers can use their cards for everyday payments, online shopping, POS, and ATM transactions across the world with more ease and flexibility.
Wema Bank also announced that its customers can now “pay in dollars” with their naira cards on international platforms such as Amazon, eBay, AliExpress, Netflix, Spotify, and YouTube.
GTBank, on the other hand, has set a quarterly limit of $1,000 on its naira cards for international transactions, with a breakdown of $500 for ATM withdrawals and $1,000 for online and POS transactions.
Background to the Suspension
The suspension of international transactions on naira cards was triggered by the chronic FX scarcity, which threatened the survival of key sectors of the economy.
Several banks, including Standard Chartered, First Bank, GTBank, and Zenith Bank, suspended international transactions on their naira debit cards between July 2022 and January 2023. Fintech platforms like Flutterwave and Eversend also suspended their virtual card services for international transactions.
Reasons Behind the Resumption
Financial experts attribute the resumption of international transactions to improved liquidity in the foreign exchange market, a narrowing gap between official and parallel market rates, and reduced opportunities for arbitrage.
Other contributing factors include:
- Increased Diaspora Remittances: Rising remittances from Nigerians in the diaspora have helped boost foreign exchange inflows.
- Restored Confidence in FX Management: The Central Bank of Nigeria’s (CBN) policies have restored confidence in the country’s foreign exchange management.
- Stronger Naira: The naira has strengthened due to federal reforms and increased oil revenue.
Banks Affected and Transaction Limits
The banks have set specific transaction limits for international transactions on naira cards. Here are the details:
- UBA: All Premium Naira Cards, including Gold, Platinum, and World variants, are now enabled for international transactions.
- Wema Bank: Customers can use their naira cards, including Mastercard, ALAT Mastercard, and Visa, for international spending with a monthly limit of $500.
- GTBank: Naira cards are enabled for international transactions with a quarterly limit of $1,000, broken down into $500 for ATM withdrawals and $1,000 for online and POS transactions.
Impact on Customers
The resumption of international transactions on naira cards is expected to benefit millions of Nigerians who rely on these services for online shopping, international payments, and other transactions. With this development, customers can now enjoy more flexibility and convenience in their financial transactions.
Conclusion
The resumption of international transactions on naira cards marks a significant milestone in Nigeria’s financial sector. With improved FX liquidity and policy reforms, more banks are expected to follow suit in reactivating international payment capabilities on naira cards. This development is likely to boost confidence in Nigeria’s foreign exchange management and enhance the country’s economic prospects.
