Commercial banks have lifted the over three years moratorium on the use of naira-funded debit cards abroad as dollar liquidity rises.
A Tier-1 bank and mid-tier bank, United Bank for Africa (UBA) Plc and Wema Bank Plc respectively, have announced the resumption of international transactions on their naira debit cards.
In separate announcements to customers, UBA and Wema Bank said the service has recommenced on their naira cards.
The development comes about three years after many banks suspended international transactions on naira debit cards or dip in dollar liquidity, forcing many local lenders to restrict transactions of local cards abroad.
Transactions are, however, allowed for dollar-funded cards, usually linked to cardholders’ domiciliary accounts.
But all that changed following a steady surge of forex inflows into the domestic economy.
Analysis of FX inflows in the last few months showed that Nigeria attracted $5.96 billion monthly inflows from May 2025 till date.
Industry report showed that Nigeria’s foreign exchange market witnessed a significant boost in May, with total inflows rising by 62.0 per cent month-on-month (M-o-M) to $5.96 billion, driven largely by increased participation from domestic and foreign investors.
This marked one of the highest inflow levels in recent months and signals improving market sentiment amid macroeconomic reforms and a relatively stable naira.
In an emailed note to investors, analysts at Financial Derivatives Company Limited attributed rising FX inflows to surge in oil prices and multiple inflow channels created by the Central Bank of Nigeria.
The Central Bank of Nigeria (CBN) has in recent months, activated multiple FX sources to increase dollar inflows, boost dollar access to manufacturers and retail end users and support naira recovery across markets.
