Nigerian commercial banks are increasing international spending limits on naira-denominated cards as improving dollar liquidity gives customers greater room to make payments abroad.
A report by The Nation said banks have begun raising limits on international card transactions following a sustained improvement in foreign-exchange liquidity and growth in Nigeria’s external reserves.
The changes could ease pressure on Nigerians who use local bank cards for international payments, including online purchases, travel expenses, subscriptions and other transactions billed in foreign currencies.
The development marks a shift from the tighter foreign-exchange restrictions that affected international card usage during periods of severe dollar shortages.
Improved liquidity in the foreign-exchange market has increasingly allowed banks to provide customers with greater access to foreign-currency transactions, although limits and conditions vary across individual banks.
The move also comes amid efforts by the Central Bank of Nigeria to deepen confidence in the foreign-exchange market and improve dollar availability.
For consumers and businesses that rely on international payments, higher card limits could reduce the need to seek alternative payment channels and make foreign transactions more predictable.
However, the sustainability of the higher limits will depend on continued improvements in foreign-exchange liquidity and the stability of the naira.
