Two major Nigerian commercial banks, United Bank of Africa (UBA) and Wema Bank, have announced the reinstatement of international transactions on their naira debit cards, marking the end of a nearly three-year suspension prompted by foreign exchange (FX) scarcity.
In separate statements to customers, UBA and Wema Bank confirmed that their naira cards are now enabled for global transactions, including online shopping, point-of-sale (POS) purchases, and ATM withdrawals worldwide.
UBA stated that the move aligns with its commitment to enhancing customer banking experiences. “All UBA Premium Naira Cards, including Gold, Platinum, and World variants, are now enabled for international transactions,” the bank announced. “This offers our premium cardholders greater ease and flexibility for everyday payments and global transactions.”
Similarly, Wema Bank highlighted the global reach of its Naira Mastercard, stating, “Your Wema Naira Mastercard just went global! You can now pay in dollars on international platforms like Amazon, eBay, AliExpress, Netflix, Spotify, and YouTube.”
The decision follows improved liquidity in Nigeria’s FX market, as explained by industry experts. Ayokunle Olubunmi, head of financial institutions ratings at Agusto & Co, attributed the reactivation to reduced arbitrage opportunities and a moderating premium on parallel market transactions.
Charles Sanni, CEO of Cowry Treasurers, noted that the narrowing gap between official and parallel market exchange rates, coupled with high interest rates discouraging FX speculation, has bolstered banks’ confidence. “The naira’s appreciation, increased diaspora remittances, and restored confidence in FX management by the Central Bank of Nigeria (CBN) and the federal government have also played a role,” Sanni told TheCable. He further cited Nigeria’s improved credit rating, clearance of FX backlogs, a new trading platform, rising oil prices, and ongoing bank recapitalization efforts as contributing factors.
The suspension of international transactions on naira cards began between July 2022 and January 2023, when banks like Standard Chartered, First Bank of Nigeria, Guaranty Trust Bank, and Zenith Bank halted global payments due to chronic FX shortages that strained key economic sectors. Financial technology platforms, including Flutterwave and Eversend, also suspended virtual card services for international transactions during this period.
The resumption of these services signals a positive shift in Nigeria’s FX landscape, offering cardholders renewed access to global financial platforms and enhanced banking convenience.
