Banks raise dollar spending limits as FX supply improves

From Adanna Nnamani, Abuja

Nigerian banks are raising the limits on international transactions through naira-denominated cards as improved foreign exchange (FX) liquidity eases the dollar shortages that had restricted overseas spending in recent years.

GTCO, FirstBank, Zenith Bank, UBA and Stanbic IBTC are among lenders that have increased their international transaction limits, giving customers greater access to dollars for payments abroad, online purchases, school fees, travel and other foreign obligations.

GTCO has made one of the biggest adjustments, increasing the quarterly international spending limit on its naira cards to $40,000. The new limit is 566.7 per cent higher than the $6,000 ceiling announced in May and twice the $20,000 limit introduced in August.

FirstBank has also raised its limits, with its Naira Mastercard now allowing customers to conduct international transactions of up to $10,000 cumulatively per quarter through online and Point-of-Sale channels. Its ATM withdrawal limit has also been increased to $1,000 daily.

Zenith Bank currently permits international transactions of up to $50,000 annually on its naira cards, while UBA allows up to $20,000 for POS transactions through its World USD card and $10,000 for online transactions.

Stanbic IBTC has raised its quarterly international card spending limit to $8,000, from below $5,000 previously.

The latest adjustments mark a sharp reversal of the restrictions imposed by banks between 2023 and 2025 when severe dollar shortages forced lenders to slash international card limits or suspend overseas transactions altogether.

The restrictions made it difficult for Nigerians to pay for international services, including tuition, airline tickets, hotel bookings, software subscriptions and online advertising, forcing many customers to seek dollars through the parallel market.

Financial analysts said the latest increases reflect stronger dollar availability in the formal FX market.

Olubunmi Ayokunle, Head of Financial Institutions Rating at Agusto & Co, said the development was primarily driven by improved liquidity.

“The thing simply is, it just shows the availability of FX. As the FX market is getting more liquid, banks can access more liquidity,” he said.

Ayokunle added that banks could not offer similar limits during the height of the FX crisis because “there wasn’t enough liquidity in the FX market.”

The improvement has been linked to reforms by the Central Bank of Nigeria, including the willing-buyer, willing-seller FX framework, efforts to strengthen diaspora remittance channels and the licensing of more international money transfer operators.

Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, however, warned that the higher limits must be closely monitored to prevent abuse.

He said regulators could review the limits if they detect money laundering, compliance breaches or unusual demand for dollars.

The increase in card limits comes alongside a broader improvement in Nigeria’s external position. The country’s external reserves crossed $54 billion in early September, reaching $54.08 billion as of September 3, according to data cited by Nairametrics. The reserves have gained about $8.51 billion since the beginning of the year.

The CBN has also increased the maximum tuition fee remittance for students studying abroad from $15,000 to $25,000 per semester, further easing access to foreign exchange for legitimate international payments.

The latest developments suggest that improved FX liquidity is gradually allowing Nigerian banks to restore services that were curtailed during the country’s worst period of dollar scarcity, while giving individuals and businesses more room to conduct legitimate transactions abroad.