UBA, Wema, Other Nigerian Banks Resume Foreign Transactions in Naira.
In a notable development aimed at easing cross-border financial activities and reducing pressure on the U.S. dollar, major Nigerian commercial banks including United Bank for Africa (UBA), Wema Bank, Zenith Bank, and others have resumed the processing of foreign transactions using the naira. This marks a significant shift from the previously dollar-dominated transactions that restricted many Nigerians from easily conducting international payments. The policy update, confirmed through circulars and public notices sent to customers by some banks, is being applauded as a progressive step by stakeholders in the financial and business sectors. Industry experts believe this could boost local liquidity, reduce dollar hoarding, and stabilize the forex market—if effectively sustained and backed by stronger monetary policies.
The Central Bank of Nigeria (CBN) has been at the forefront of various reforms since the floating of the naira and the unification of the exchange rates. With increasing volatility in the value of the naira and challenges faced by Nigerians trying to pay for services abroad—such as tuition fees, subscriptions, or online shopping—many have turned to expensive black market channels. The resumption of naira-based foreign transactions directly by commercial banks helps to close this gap. According to an official from one of the commercial banks, customers can now use their naira debit cards on international platforms, with a capped monthly spending limit, currently between ₦50,000 to ₦200,000 depending on the bank. This new policy is especially targeted at online payments such as Netflix, Amazon, Spotify, and other global merchants that accept card transactions.
Customers have expressed mixed reactions to the development. On one hand, many are thrilled that they can now perform international transactions again with relative ease, avoiding the struggle of sourcing dollars. On the other hand, some are concerned about the spending limits and fluctuating exchange rates applied by the banks during transactions. Despite these concerns, the convenience and security of using regulated bank channels outweigh the risks involved in patronizing unauthorized exchange dealers. For Nigerian freelancers, business owners, students, and digital consumers, this comes as a welcome relief. Many had been unable to pay for essential services like domain name renewals, cloud storage, online certifications, and other digital tools required for their personal and professional advancement.
Additionally, the renewed access to international markets via naira transactions could stimulate e-commerce growth and tech-based entrepreneurship in Nigeria. Small business owners who rely on importing tools, raw materials, or digital services from foreign markets have struggled in the past year due to stringent dollar restrictions. The opportunity to now make payments directly in naira enhances their agility, competitiveness, and customer service delivery. The fintech community, in particular, is expected to benefit massively from this change, as more people gain access to international resources without navigating the black-market terrain or relying solely on domiciliary accounts. Analysts say this could improve Nigeria’s ranking on the global ease of doing business index and attract more foreign investments in the long run.
However, economic experts caution that while this is a commendable initiative, its long-term impact will depend on consistent monetary policy enforcement and macroeconomic stability. The CBN will need to ensure transparency, reduce arbitrage opportunities, and continue to provide forex liquidity support to banks in order for this system to thrive. If banks are unable to access the needed forex to clear international payments, customers could face a repeat of previous scenarios where transactions are declined or delayed. This could affect public trust and disrupt the current momentum. There is also a pressing need for more public education on how to use the service responsibly and manage expectations regarding transaction fees and currency conversion rates.
In conclusion, the resumption of naira-based foreign transactions by Nigerian banks is a clear indication of gradual economic recalibration. It reflects efforts to digitize the financial sector, empower consumers, and foster economic inclusion in a globalized digital economy. Though it may take time for the full benefits to be felt, especially by low-income earners and rural populations, this policy shift opens the door to greater financial freedom for Nigerians. With continued support from the banking sector, government, and regulatory bodies, Nigeria may be on a path to not just economic recovery, but also a more diversified and resilient financial ecosystem.