The Central Bank of Nigeria’s foreign exchange reforms are beginning to reach consumers, with commercial banks expanding international spending limits on naira-denominated cards as dollar liquidity improves.
Guaranty Trust Bank (GTBank) has raised the quarterly international spending limit on its naira cards to $20,000, up sharply from the $6,000 ceiling introduced in November 2025 and the $1,000 limit announced in July 2025.
The higher threshold gives eligible customers greater capacity to pay for international transactions, including airline tickets, hotel bookings, tuition and purchases of goods and services abroad.
The development points to improving liquidity in Nigeria’s foreign exchange market and growing confidence among banks that the CBN’s market reforms are producing more predictable access to dollars.
Financial analysts said the increased card limits could also boost banks’ fees and foreign exchange-related revenues as international transactions recover.
Ayokunle Olubunmi, Head of Financial Institutions Ratings at Agusto & Co., attributed the development partly to improved FX liquidity, while noting that increased card usage could provide additional revenue opportunities for banks.
Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise, said the higher limits reflected increased confidence in the FX market, supported by greater exchange-rate stability and stronger external reserves.
The CBN has also raised the ceiling for tuition remittances by Nigerian students studying abroad to $25,000 per semester, from $15,000 previously, under the latest edition of its Foreign Exchange Manual.
Other banks have similarly adjusted their international card limits, although the thresholds vary.
Access Bank allows holders of Visa Signature and Visa Platinum cards to spend up to $3,000 monthly internationally, while Visa Classic and Mastercard holders have a monthly limit of $2,000.
UBA has quoted an exchange rate of about N1,378 to the dollar for international naira card transactions, subject to prevailing market conditions.
Stanbic IBTC, however, maintains a significantly lower international spending ceiling of $100 monthly on its naira debit cards for point-of-sale, online and ATM transactions.
The changes come amid a marked improvement in Nigeria’s external liquidity position.
CBN Governor Olayemi Cardoso recently said net foreign exchange reserves had risen from slightly above $3 billion at the start of the reform programme to more than $40 billion, while gross reserves had climbed to about $52 billion.
Cardoso said the FX market was increasingly being driven by genuine buying and selling rather than routine CBN intervention, allowing the apex bank to concentrate its interventions on periods of market stress.
For consumers, the expanding card limits offer a tangible indication that improved dollar liquidity is beginning to filter through to everyday international transactions.
For the broader economy, the development could ease pressure on legitimate FX demand, strengthen confidence in the naira and provide further evidence that the CBN’s reforms are gradually moving the currency market towards greater stability.
Source: BusinessDay report
