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The Central Bank of Nigeria (CBN) is breaking new ground in its drive for economic stability and financial inclusion, with the recent reactivation of naira-denominated debit cards for international transactions—a key milestone supported by broader forex reforms and growing investor confidence.
Over the past year, under the leadership of Governor Olayemi Cardoso, the CBN has introduced bold policy reforms aimed at stabilising the exchange rate, curbing inflation, and restoring confidence in Nigeria’s monetary framework. These reforms, which include unifying the foreign exchange market, halting deficit financing by the CBN, and removing fuel subsidies, have triggered notable improvements in foreign exchange liquidity and reserve buffers.
Naira Cards Regain Global Utility
A major outcome of these reforms is the lifting of restrictions on naira debit cards for overseas transactions, a restriction that had lasted over three years due to dollar scarcity.
Leading Nigerian banks—including UBA, FirstBank, GTBank, and Wema Bank—have announced the resumption of international services on their naira-denominated cards, enabling customers to make global payments for goods and services across platforms such as Amazon, Netflix, eBay, and others. Customers can now pay in dollars while funding their transactions directly in naira.
UBA, in a customer notice, confirmed that its Premium Naira Cards (Gold, Platinum, and World) are now active globally. Similarly, Wema Bank noted that its Naira Mastercard “just went global,” and FirstBank reinstated a $500 monthly spending limit for its Naira Mastercard on international platforms. GTBank has placed a $1,000 quarterly cap on POS and online payments and a $500 cap on ATM withdrawals.
These developments come as foreign exchange inflows into Nigeria surged to $5.96 billion in May 2025, the highest monthly figure in years, driven by growing confidence among foreign and domestic investors and rising oil prices. Analysts at Financial Derivatives Company linked the FX inflow boost to both oil market dynamics and the CBN’s reform-driven multipronged FX strategy.
Strategic FX Reforms and Reserve Growth
Governor Cardoso has made rebuilding Nigeria’s external buffers a top priority since assuming office in October 2023. At that time, the country faced over $7 billion in FX backlogs and an inefficient, fragmented exchange rate regime. Today, net FX reserves have surged to $23.11 billion, the highest in over three years, up from just $3.99 billion at the end of 2023. Gross reserves also grew to $40.19 billion from $33.22 billion.
To support this rebound, the CBN has taken steps such as:
- Implementing a willing buyer–willing seller model in the FX market
- Clearing FX backlogs, restoring confidence among manufacturers, airlines, and investors
- Introducing an electronic FX matching system for improved transparency
- Significantly reducing short-term FX liabilities (notably swaps and forwards)
These reforms have helped to eliminate arbitrage, tighten monetary discipline, and encourage long-term planning by businesses.
Multi-Channel FX Liquidity Drive
The CBN has also diversified Nigeria’s FX sources to reduce vulnerability to global shocks. Measures include:
- Strengthening diaspora remittances, which generate over $23 billion annually
- Approving more International Money Transfer Operators (IMTOs)
- Improving access to naira liquidity for IMTOs and authorised dealers
- Introducing innovative financial products to drive FX inflows through the official market
According to Aminu Gwadabe, President of the Association of Bureaux De Change Operators of Nigeria (ABCON), these reforms demonstrate the CBN’s creative policy direction and commitment to maintaining a steady flow of forex to support business growth.
Digital Transactions and Customer Empowerment
The restoration of naira card usability abroad is more than symbolic—it tangibly improves customer convenience, particularly for travellers and SMEs involved in cross-border commerce. Analysts agree that the move helps eliminate reliance on parallel markets for basic foreign transactions, curbing speculation and improving transparency.
According to Ayokunle Olubunmi, Head of Financial Institutions Ratings at Agusto & Co, better FX liquidity and reduced market arbitrage gave banks the confidence to reinstate global usage of naira cards.
Sustaining the Momentum
The International Monetary Fund (IMF) has also praised Nigeria’s reform agenda but stressed the need for sustained implementation. According to Axel Schimmelpfennig, IMF Mission Chief to Nigeria, and Christian Ebeke, Resident Representative, the country needs inclusive growth, realistic budgetary frameworks, and improved tax systems to secure long-term prosperity.
They noted that while macroeconomic reforms are necessary, building effective social safety nets is equally critical to protecting vulnerable populations during the transition.
Outlook
Going forward, Nigeria’s FX reserves are expected to continue improving in 2025, supported by:
- Higher oil production levels
- Non-oil export expansion
- Diversified foreign capital inflows
With the FX market stabilising, naira cards regaining global functionality, and reserves reaching a healthy threshold, Nigeria is repositioning itself for stronger macroeconomic resilience and global financial integration.
As Governor Cardoso affirmed, “This improvement in our net reserves is not accidental; it is the outcome of deliberate policy choices aimed at rebuilding confidence, reducing vulnerabilities, and laying the foundation for long-term stability.”
Conclusion
The return of naira card international functionality underscores the effectiveness of Nigeria’s evolving monetary strategy. The CBN’s focus on transparency, discipline, and reform is not only strengthening market confidence but also empowering consumers, stabilising the currency, and reinforcing the country’s path to sustainable economic recovery.
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