After years of restrictions, Nigerian banks have resumed international transactions on Naira debit cards. This move, following a wave of FX policy reforms, marks a potential turning point for businesses, especially SMEs and digital enterprises that rely on cross-border services and suppliers. But what does this mean for your business?

A Brief Background: What Changed?

In 2020, Nigerian banks suspended the use of Naira cards for international payments due to FX scarcity and rising demand. Many businesses were forced to use domiciliary accounts, rely on the parallel market, or go through third-party vendors for foreign payments.

Now, with the Central Bank of Nigeria easing FX controls and improving dollar liquidity, several Tier 1 banks, including GTBank, Zenith, and UBA, have re-enabled Naira cards for global payments. Users can now make international payments directly in USD or other major currencies with limits ranging from $500 to $10,000 per month, depending on the bank.

What This Means for Nigerian Businesses

1. Lower Barriers to Global Services

Businesses can now pay for foreign software, subscriptions, tools, and vendors directly without the complexity of sourcing USD or opening domiciliary accounts. This is especially critical for tech startups, freelancers, and e-commerce operators.

2. Simpler Treasury Management

With a unified spending channel and reduced FX bottlenecks, CFOs and finance teams can easily manage spend forecasts, automate recurring payments, and reduce FX slippage caused by parallel market exposure.

3. Cost Efficiency

Transactions are now settled at bank-approved rates, which are typically lower than black-market rates. This could result in significant cost savings over time, especially for companies with recurring global payments.

Points of Caution

• Spending Limits Still Apply: Most banks currently offer modest limits. Businesses with large monthly obligations may still need to explore multi-channel FX strategies.
• Rate Transparency May Vary: FX rates applied by banks may not be fully transparent or consistent across all institutions.
• Availability Is Bank-Dependent: Not all banks have rolled out this feature fully, and fintech options remain limited. Businesses need to confirm with their provider before switching payment processes.

Why It Matters Now

Increased FX liquidity has led to improved confidence in the market. But this development is also strategic, rebuilding trust in the Naira and reducing dependence on unofficial FX markets. For businesses, it means you can now plug back into the global economy with fewer hoops to jump through.

Conclusion

The reactivation of Naira cards for international payments is a strategic opportunity. For Nigerian businesses, it could mean smoother operations, reduced costs, and greater access to global tools and markets. However, the key is knowing how to take advantage of it, and with the right information.

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