Nigeria Banks Resume International Transactions on Naira Cards. In a move that reflects growing confidence in Nigeria’s foreign exchange reforms and broader fiscal environment, Nigerian banks have resumed international transactions on naira debit cards—three years after suspending the service due to currency volatility.
United Bank for Africa (UBA) and Wema Bank were among the first to announce the return of cross-border payments on their naira-denominated cards.
The decision, according to industry experts, comes at a time when the Central Bank of Nigeria (CBN) is pursuing policy reforms aimed at exchange rate unification, boosting diaspora remittances, and enhancing investor confidence—developments that may also impact tax reporting and compliance in international transactions.
Why Banks Are Reinstating Cross-Border Naira Card Usage
According to Ayokunle Olubunmi, Head of Financial Institutions Ratings at Agusto & Co, the decision is largely driven by improved liquidity in the FX market.
“The narrowing gap between the official and parallel exchange rates has reduced arbitrage opportunities,” he said,
“and this makes international transaction risk more manageable for banks.”
Charles Sanni, CEO of Cowry Treasurers, shared similar sentiments, highlighting how the naira’s steady appreciation and improved FX management have boosted market confidence.
He added that the Central Bank of Nigeria’s (CBN) policy of allowing diaspora Nigerians to open non-resident accounts has led to increased foreign remittances, easing FX pressures further.
“There’s also a new level of trust in the government’s FX policies,” Sanni noted.
“This includes the clearance of FX backlogs, the deployment of a new trading platform, rising global oil prices, and recapitalisation efforts within the banking sector.”
Tax Implications and Regulatory Considerations
While the announcement is welcome news for consumers and businesses, tax professionals are watching closely for implications on cross-border payments, transfer pricing rules, and VAT compliance on digital services.
With international transactions now back in play, Nigerian tax authorities are expected to enhance scrutiny of foreign payments, especially in light of the Finance Act and ongoing tax administration reforms.
This development also comes at a time when Nigeria is ramping up efforts to improve tax transparency and digitize financial monitoring systems, raising the possibility of tighter reporting on international card spending.
Background: Why Banks Suspended Naira Cards Internationally
Between mid-2022 and early 2023, several banks—including Standard Chartered, First Bank, GTBank, and Zenith Bank—halted international transactions on naira debit cards. This was due to severe FX shortages, policy uncertainty, and operational constraints linked to currency risk.
Fintech platforms like Flutterwave and Eversend also suspended virtual card services for similar reasons.
The temporary ban affected millions of Nigerians relying on naira cards for international subscriptions, online shopping, and cross-border travel, pushing many to seek costly alternatives such as domiciliary accounts and prepaid dollar cards.
Looking Ahead
The reactivation of naira card usage for global payments signals renewed confidence in Nigeria’s FX outlook and economic reforms.
However, stakeholders in tax and financial compliance circles advise businesses and high-net-worth individuals to engage professional support to ensure compliance with transfer pricing, tax reporting, and FX documentation requirements.
As Nigeria’s fiscal and monetary landscape continues to evolve, experts say that aligning tax strategy with new financial tools is more important than ever.