UBA, Wema Bank resume international transactions on naira cards
UBA and Wema Bank have restarted international transactions on naira debit cards, marking a notable change in Nigeria’s banking landscape after a lengthy period of restrictions.This development occurs almost three years after the majority of Nigerian banks stopped global transactions on naira cards due to a critical foreign exchange crisis. UBA and Wema both communicated this information to their customers in separate announcements this week.
UBA stated that this service is now accessible on all of its Premium Naira Cards, including Gold, Platinum, and World variants. “You can now utilize your Premium Naira Card for daily payments, online shopping, POS, and ATM transactions worldwide with enhanced ease and flexibility,” the bank remarked.
Wema Bank similarly informed its clients that their naira Mastercard is now activated for global payments. “Your Wema Naira Mastercard has gone global! Now you can transact in dollars on your favorite international platforms—Amazon, eBay, AliExpress, Netflix, Spotify, YouTube,” the bank declared.
Financial experts suggest that this decision is indicative of improving conditions in Nigeria’s foreign exchange market. Ayokunle Olubunmi, Head of Financial Institutions Ratings at Agusto & Co, observed that better liquidity and a decrease in the disparity between official and parallel market exchange rates are significant factors.
Charles Sanni, CEO of Cowry Treasurers, pointed out that elevated interest rates in Nigeria are lessening speculative pressure on foreign exchange, while increased remittances from the diaspora and recent policy changes by the Central Bank of Nigeria are also instilling greater confidence in the system.
“The naira has been appreciating against major currencies, and with improved ease in fund transfers and capital repatriation, the foreign exchange outlook has become more favorable,” Sanni mentioned.
He also highlighted Nigeria’s enhanced credit rating, the resolution of FX backlogs, the introduction of a new trading platform, rising oil prices, and improved bank capitalisation as additional reasons for this decision.
From mid-2022 to early 2023, numerous banks—including Standard Chartered, First Bank, GTBank, and Zenith Bank—suspended international transactions on naira cards as the foreign exchange shortage intensified. Fintech platforms like Flutterwave and Eversend also halted their virtual card services for the same reasons.
This latest initiative by UBA and Wema signifies increasing optimism in the financial sector and may encourage other banks to follow their lead.
As the foreign exchange environment stabilizes and reforms are implemented, Nigerians might finally experience a resurgence in the convenience of making global payments with local cards—an essential advancement for a nation significantly involved in international trade and digital services.
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