Several Nigerian banks are increasing the amount customers can spend on international transactions with their naira cards, in what financial analysts say reflects improved foreign-exchange liquidity in the banking system.
The development is a significant shift from the restrictions Nigerians experienced during the height of the foreign-exchange crisis, when banks reduced international card limits and, in some cases, suspended certain offshore transactions.
According to a report published on Tuesday, September 8, GTBank has increased its quarterly international spending limit on naira cards to $40,000, up from $6,000 in May and $20,000 in August.
Other banks have also adjusted their limits. FirstBank’s Naira Mastercard reportedly allows up to $10,000 per quarter for point-of-sale and online transactions, while its international ATM withdrawal limit has risen to $1,000 per day. Zenith Bank reportedly permits up to $50,000 annually for international card transactions, while Stanbic IBTC has raised its quarterly limit to $8,000.
The higher limits could provide relief for Nigerians who need to make legitimate payments for international tuition, airline tickets, hotel bookings, software, digital subscriptions and other overseas services.
Financial institutions had previously struggled to provide sufficient dollar liquidity for international card transactions because of the scarcity of foreign exchange. The latest adjustments suggest that banks now have greater access to foreign currency through the official market.
Olubunmi Ayokunle of Agusto & Co. attributed the development largely to improved forex availability, explaining that banks were unable to sustain higher limits during the peak of the forex crisis because of inadequate dollar liquidity.
However, analysts have cautioned that the increased access will need to be monitored to prevent abuse. Centre for the Promotion of Private Enterprise CEO Muda Yusuf said regulators may need to review the limits if they detect unusual dollar demand, money-laundering concerns or other forms of misuse.
The development comes as Nigeria’s foreign-exchange market continues to adjust to reforms aimed at improving liquidity and stabilising the naira.
For ordinary Nigerians, the changes could make it easier to pay for legitimate international services that previously faced frequent transaction failures or restrictive spending limits.
