Two major Nigerian commercial banks have restored international transaction capabilities on their naira-denominated cards, marking the end of a three-year suspension period that affected millions of customers.

United Bank of Africa (UBA) and Wema Bank announced the service restoration in recent customer communications, signaling renewed confidence in Nigeria’s foreign exchange market stability.

Service Restoration Details

UBA’s announcement highlighted the return of international functionality across its premium card portfolio. The bank confirmed that Gold, Platinum, and World variant cards can now process global transactions, including everyday purchases, online shopping, point-of-sale payments, and ATM withdrawals worldwide.

The bank emphasized this development as part of its ongoing effort to deliver enhanced banking experiences, encouraging customers who haven’t used their cards recently to rediscover the convenience of premium card ownership.

Meanwhile, Wema Bank promoted its restored services with a focus on popular international platforms. The bank’s messaging emphasized that customers can now use their Wema Naira Mastercard for dollar-denominated transactions on major platforms including Amazon, eBay, AliExpress, Netflix, Spotify, and YouTube.

Market Conditions Behind the Decision

Financial analysts attribute the restoration to significantly improved foreign exchange market conditions. Ayokunle Olubunmi from Agusto & Co’s financial institutions ratings division points to enhanced FX market liquidity as a key factor enabling banks to reactivate global transaction capabilities.

The reduced premium differential between official and parallel market exchange rates has also eliminated much of the arbitrage opportunity that previously created market distortions, according to Olubunmi.

Charles Sanni, CEO of Cowry Treasurers, explains that the narrowed spread between official and parallel market rates likely influenced bank decisions. He notes that Nigeria’s elevated interest rates have reduced incentives for speculative foreign exchange borrowing.

Additional factors supporting the restoration include the naira’s continued appreciation against major global currencies and increased diaspora remittances following the Central Bank of Nigeria’s policy allowing non-resident account opening, particularly for Nigerians abroad.

Broader Economic Improvements

Sanni identifies several macroeconomic improvements that have restored confidence in Nigeria’s FX management. These include enhanced ease of fund transfers and capital repatriation, improved national credit ratings, and the clearance of foreign exchange backlogs.

The implementation of new trading platforms, rising oil prices driven by geopolitical tensions, and improved bank capitalization have further strengthened the environment for international banking services.

Historical Context

The suspension period began in mid-2022 when chronic foreign exchange scarcity threatened multiple economic sectors. Standard Chartered Bank initiated the trend in July 2022 by suspending international transactions on its naira visa debit cards.

First Bank of Nigeria followed in September 2022 with Mastercard suspensions, while Guaranty Trust Bank discontinued global payments on its naira Mastercard three months later. Zenith Bank joined the suspension wave in January 2023.

The impact extended beyond traditional banks, with financial technology platforms including Flutterwave and Eversend also suspending virtual card services for international transactions during this period.

The current restoration by UBA and Wema Bank suggests that Nigeria’s foreign exchange market has stabilized sufficiently to support renewed international banking services, potentially paving the way for other institutions to follow suit.