Foreign card transactions resume as CBN eases FX restrictions
The Central Bank of Nigeria’s recent reforms are leading to the return of foreign card usage in Nigeria after years of restrictions. Olayemi Cardoso and the current CBN management have introduced targeted policies to improve FX liquidity and investor confidence. Banks are now lifting restrictions on international card transactions, reflecting renewed stability in the country’s payments ecosystem. The changes aim to balance easier access with stronger security and regulatory oversight.
TLDR
- The CBN’s latest directive requires banks and non-bank acquirers to use multi-factor authentication for foreign card transactions exceeding $200 per day, $500 per week, and $1,000 per month, or their naira equivalents.
- Foreign capital inflows reached $20.98bn in the first 10 months of 2025, a 70% increase over 2024 and a 428% jump from $3.9bn in 2023.
- Nigeria’s external reserves stood at $46.7bn by mid-November, with the current account balance rising by over 85% to $5.28bn in the second quarter of 2025 from $2.85bn in the first quarter.
- Banks like United Bank for Africa, FirstBank, GTBank, and Wema Bank have resumed international transactions on naira debit cards.
- The CBN’s Quarterly Statistical Bulletin for the first quarter of 2025 showed total FX utilisation rose by 19% quarter-on-quarter to $9.3bn, with invisible transactions growing by 54% to $4.5bn.
