Nigerian Banks Resume International Transactions on Naira Cards

Two Nigerian banks, United Bank for Africa (UBA) and Wema Bank, have resumed international transactions on their naira cards, nearly three years after many banks suspended the service due to foreign exchange (FX) issues.

UBA, in a message to customers, said its Premium Naira Cards — including Gold, Platinum, and World variants — are now active for international use. “You can now use your Premium Naira Card for everyday payments, online shopping, POS, and ATM transactions across the world,” the bank said.

Wema Bank also confirmed that its naira Mastercard can now be used for payments in dollars on platforms such as Amazon, eBay, AliExpress, Netflix, Spotify, and YouTube.

Experts link the resumption of these services to changes in Nigeria’s foreign exchange market.

Ayokunle Olubunmi, Head of Financial Institutions Ratings at Agusto & Co, said the move was encouraged by improved liquidity and reduced arbitrage in the FX market.

Charles Sanni, CEO of Cowry Treasurers, said the narrowing gap between official and parallel market rates contributed to the decision. He noted that high interest rates have reduced speculation, while the naira’s appreciation and increased diaspora remittances — driven by Central Bank policies — have strengthened confidence in FX management.

Sanni also mentioned other factors, including the clearance of FX backlogs, improved credit ratings, a new trading platform, rising oil prices, and increased capitalisation of banks.

Banks suspended international transactions on naira cards between 2022 and early 2023 during an FX crisis. Institutions like Standard Chartered, First Bank, GTBank, and Zenith Bank stopped dollar payments on naira cards. Fintech firms such as Flutterwave and Eversend also discontinued virtual dollar card services.

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