By Olumide Johnson
Nigerian banks are expanding customers’ access to dollar-denominated international transactions as improved foreign exchange liquidity allows lenders to raise spending limits on naira cards.
The move marks a significant reversal from the tight restrictions imposed during the 2023-2025 forex shortages, when banks struggled to meet customers’ offshore dollar demand.
DEVELOPMENT
GTBank has raised the quarterly international spending limit on its naira cards to $40,000, following successive increases in recent months.
Other major lenders have also increased their international transaction limits. FirstBank’s Naira Mastercard now permits up to $10,000 in quarterly POS and online transactions, while its daily international ATM withdrawal limit has risen to $1,000.
Zenith Bank allows international card transactions of up to $50,000 annually, while Stanbic IBTC has increased its quarterly limit to $8,000. UBA also provides international spending access through its dollar-linked card products.
The higher limits cover transactions including tuition payments, airline tickets, accommodation, software, subscriptions and other international purchases.
Olubunmi Ayokunle, Head of Financial Institutions Rating at Agusto & Co, attributed the changes primarily to improved dollar availability, noting that banks had been constrained by insufficient forex liquidity during the height of the crisis.
Dr Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), welcomed the development but called for stronger monitoring to prevent abuse.
NUMBERS
GTBank’s quarterly international spending limit has increased to $40,000, from $6,000 in May and $20,000 in August.
FirstBank’s Naira Mastercard allows up to $10,000 quarterly for international POS and online transactions, with a $1,000 daily ATM withdrawal limit.
Zenith Bank permits up to $50,000 annually for international card transactions.
Stanbic IBTC’s quarterly international spending limit stands at $8,000.
The increases reverse restrictions that were introduced across the banking industry during the 2023-2025 forex liquidity squeeze.
SIGNIFICANCE
The expansion of international spending limits is an important market signal because card transaction capacity is closely linked to banks’ ability to source and settle dollar obligations.
For consumers and businesses, higher limits reduce friction around legitimate international payments and provide greater certainty for expenses such as education, travel and digital services.
For the banking sector, the development suggests that improved access to foreign exchange is beginning to translate into a broader restoration of dollar-based services that were curtailed during the liquidity crisis.
It also provides an indirect indicator of banks’ confidence in the availability of forex through the official market. However, higher limits could increase dollar demand if customers respond by significantly increasing offshore spending.
The regulatory balance will therefore be between restoring normal access to international transactions and preventing the system from being exploited for capital flight, money laundering or other forms of forex abuse.
NEXT MOVE
The immediate watchpoint is whether other banks continue to raise their international card limits as forex liquidity improves.
Regulators and banks will also need to monitor transaction patterns for unusual dollar demand, money laundering risks and attempts to use card facilities for purposes outside legitimate international spending.
The sustainability of the higher limits will ultimately depend on whether improved forex liquidity is durable enough to support increased customer demand without putting renewed pressure on the naira market.
OUR LENS
The rising card limits are more than a consumer banking development. They provide a real-time indication that forex liquidity is improving sufficiently for banks to restore services that were previously constrained by dollar scarcity.
The deeper signal is whether this represents a durable normalisation of Nigeria’s FX market. If banks can continue expanding dollar access without renewed liquidity stress, the development would point to a broader restoration of confidence and functionality in the country’s foreign exchange system.
Olumide Johnson is a journalist, reporting on energy, business, markets, policy and developments shaping Nigeria’s economy.
Discover more from StakeBridge Media
Subscribe to get the latest posts sent to your email.