The naira closed the first week of July 2025 on a strong note across multiple segments of the foreign exchange (FX) market, buoyed by improved liquidity as several Nigerian banks resumed international transactions with Naira cards.
At the official market, the local currency appreciated marginally by N1.01 to close at N1,528.56 per dollar on Friday, compared to the N1,529.57 seen on Tuesday, which was the first trading day of the month. The market has operated for four days since the month began.
In the parallel market, also referred to as the black market, the naira also gained strength, appreciating by N3 during the week to settle at N1,557 per dollar on Friday, from N1,560 quoted on Tuesday.
This renewed strength is attributed in part to improved FX liquidity and the resulting market stability, which has given banks the confidence to resume cross-border card transactions that had been suspended for months.
Within the week, major commercial banks including Guaranty Trust Bank (GTBank), United Bank for Africa (UBA), Wema Bank, and Stanbic IBTC reactivated international usage on Naira-denominated debit cards, enabling customers to make purchases and withdrawals abroad.
GTBank, in a notice to its customers, announced a quarterly international spending limit of $1,000 on its Naira card. The breakdown shows that customers can withdraw up to $500 from ATMs abroad and spend up to $1,000 via online and POS channels within the same quarter.
“Dear Customer, we are pleased to inform you that you now have a quarterly limit of $1,000 on your GTBank Naira Card to pay for all your favourite things anywhere in the world,” the bank stated.
The bank noted that the total $1,000 quarterly cap covers all international usage, including ATM withdrawals, online purchases from foreign platforms, and in-store transactions abroad.
This move comes after months of tight restrictions caused by foreign currency shortages and volatility in the exchange market, during which most banks suspended international card transactions.
With FX conditions stabilising, banks are now gradually lifting those restrictions, offering relief to customers who rely on Naira cards for online subscriptions, travel expenses, and payments on foreign platforms.
GTBank urged customers needing further details to contact GTConnect, its 24-hour customer service centre, and reiterated that terms and conditions apply.
The resumption of cross-border Naira card usage, coupled with improved liquidity, is seen by analysts as a positive sign for Nigeria’s FX market, reflecting cautious optimism in the financial sector as reforms continue to take root.
In a message to its customers, UBA announced the reactivation of overseas payments on its premium naira cards. “In line with our continued commitment to providing you with seamless and enhanced banking experiences, we are pleased to inform you that all UBA Premium Naira Cards, including Gold, Platinum, and World variants, are now enabled for international transactions,” the bank said.
Wema Bank also confirmed the development, telling its customers that they can now carry out dollar-denominated transactions using their naira cards. “Your Wema Naira Mastercard just went global! Now you can pay in dollars on all your favourite international platforms, Amazon, eBay, AliExpress, Netflix, Spotify, YouTube,” it said in a statement.
This marks a return to cross-border functionality for Naira cards, which had been restricted by banks including GTBank, UBA, Access Bank, First Bank, Zenith Bank, and Ecobank. These banks suspended international card usage between 2022 and 2023 as Nigeria battled intense foreign exchange pressures and dollar liquidity shortages.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
