Commercial banks in Nigeria have lifted a three-year moratorium on using naira-funded debit cards abroad, thanks to rising dollar liquidity. United Bank for Africa (UBA) and Wema Bank have announced the resumption of international transactions on their naira debit cards.
This development is expected to ease foreign payments for Nigerians, reducing reliance on costly alternatives like virtual dollar cards or black-market dollar purchases. UBA’s Premium Naira Cards, including Gold, Platinum, and World variants, are now enabled for international transactions. Customers can use their cards for online shopping, POS, and ATM transactions abroad.
The decision to lift the moratorium is attributed to improved dollar liquidity in the market. Rising dollar inflows, partly due to increased oil prices and Central Bank of Nigeria (CBN) policies, have boosted foreign exchange reserves. This has narrowed the gap between official and parallel market rates, reducing arbitrage opportunities and making it more viable for banks to facilitate international transactions.
The CBN’s recent policies aimed at enabling account openings for non-resident Nigerians and easing fund repatriation processes have contributed to increased confidence in FX management. These reforms have likely played a role in the banks’ decision to resume international transactions on naira cards.
The impact of this development on customers is significant. With the ability to use their naira cards for international transactions, customers can avoid expensive alternatives and minimize operational costs. This move is expected to increase convenience and reduce costs for Nigerians who frequently make international transactions.
The resumption of international transactions on naira cards is a welcome development for Nigerians who rely on these transactions for various purposes, including online shopping, travel, and business. It is expected that more banks will follow suit, further increasing the convenience and accessibility of international transactions for Nigerians.
Overall, the lifting of the moratorium on naira-funded debit cards abroad is a significant development that is expected to have a positive impact on Nigerians who rely on international transactions. The increased convenience and reduced costs associated with using naira cards for international transactions will likely benefit individuals and businesses alike.
