Commercial banks in Nigeria are expanding limits on international card transactions as improved foreign exchange liquidity and rising external reserves ease pressure on dollar payments.
Data from the Central Bank of Nigeria (CBN) showed that the country’s gross external reserves stood at $52.6 billion as of August 19, providing a stronger buffer against external shocks and supporting dollar settlements for international transactions.
Guaranty Trust Bank (GTBank) has already doubled its quarterly international spending limit from $20,000 to $40,000.
In a message to customers, the bank said the applicable foreign exchange rate for international payments on its Naira Card was N1,355 to the dollar, while noting that rates could change in line with market conditions.
The latest increase represents a significant improvement from the $6,000 quarterly limit introduced in November 2025 and the $1,000 ceiling that applied in July 2025.
Other lenders, including Access Bank, United Bank for Africa (UBA), Stanbic IBTC and Wema Bank, also offer international card transaction limits, generally below $5,000 per month for Point-of-Sale (POS) and online payments.
FirstBank had previously set quarterly limits at $1,000 for online and POS transactions, while ATM withdrawals were capped at $500.
To improve access to international payments for its customers, FirstBank, in partnership with Visa, also introduced the Visa Signature card, a premium product targeted at affluent Nigerian customers.
The bank’s Group Executive, eBusiness and Retail Products, Chuma Ezirim, said the product was part of efforts to develop financial solutions that match customers’ changing lifestyles.
Improved FX Liquidity
The expansion of card limits comes amid broader improvements in Nigeria’s foreign exchange market.
Under the CBN’s updated foreign exchange guidelines, the maximum amount that can be remitted for tuition fees for Nigerian students studying abroad has also been increased to $25,000 per semester from $15,000.
The new CBN Foreign Exchange Manual, Fourth Edition, states that tuition payments for undergraduate and postgraduate studies abroad are subject to a maximum limit of $25,000 per semester.
The policy shift follows a series of measures by the apex bank aimed at improving liquidity and deepening the foreign exchange market.
CBN Governor Olayemi Cardoso recently said market forces were increasingly determining trading outcomes rather than routine intervention by the central bank.
According to Cardoso, net foreign exchange reserves have risen to more than $40 billion from slightly above $3 billion at the beginning of the reform programme, while gross reserves have climbed to about $52 billion.
Former Registrar of the Chartered Institute of Bankers of Nigeria, Dr Uju Ogibunka, linked the higher card spending limits to improved FX liquidity and growing confidence in the Nigerian foreign exchange market.
He said the improvement was reflected in greater exchange-rate stability and the country’s stronger reserve position.
Ogibunka added that businesses and individuals were no longer facing the same level of pressure to obtain foreign exchange, although concerns about the exchange rate remained.
More Dollar Inflows
Managing Director of Financial Derivatives Company Limited, Bismarck Rewane, attributed the increase in FX inflows to higher oil prices and the creation of multiple channels for foreign exchange inflows.
He said the CBN had activated various sources of FX to increase dollar inflows, improve access for manufacturers and retail users, and support the recovery of the naira across different markets.
The apex bank has also introduced measures to strengthen diaspora remittances, including new financial products, licensing of additional International Money Transfer Operators (IMTOs), implementation of the willing-buyer, willing-seller FX model and improved access to naira liquidity for IMTOs.
These measures have helped simplify dollar inflow channels for authorised dealers and other participants in the foreign exchange market.
The expansion of international card limits by banks therefore signals growing confidence that the improved FX liquidity is sustainable enough to support increased retail dollar transactions by Nigerians travelling, studying, shopping or conducting business abroad.
