Nigerian Banks Raise Dollar Spending Limits as FX Liquidity Improves
Nigerian banks are easing restrictions on international transactions through naira-denominated debit cards, signalling growing confidence that foreign-exchange liquidity has improved and the naira market is becoming more stable.
The development is providing relief to households, students and businesses that have faced tight restrictions on access to foreign currency for international payments.
Guaranty Trust Bank Plc, one of Nigeria’s major banks, has increased its quarterly international spending limit to $20,000, a significant rise from the $6,000 ceiling introduced in November 2025 and 20 times the $1,000 limit imposed in July 2025.
Access Bank Plc and United Bank for Africa Plc have also expanded their international card transaction capacity, while Stanbic IBTC Holdings Plc continues to operate with a more conservative monthly limit of $100.
The easing of restrictions comes as the Central Bank of Nigeria’s foreign-exchange reforms appear to be improving dollar liquidity and reducing pressure on the currency market.
Under updated CBN guidelines, Nigerian students studying abroad can now remit up to $25,000 per semester for tuition, compared with the previous limit of $15,000.
Ayokunle Olubunmi, head of financial institutions ratings at Agusto & Co., said the changes reflect improved liquidity in the foreign-exchange market and banks’ efforts to maximise revenue from international card transactions.
The adjustment follows a series of measures by the apex bank aimed at deepening the FX market, improving transparency and ensuring that foreign currency is available for legitimate transactions.
CBN Governor Olayemi Cardoso has said market forces are increasingly determining foreign-exchange trading outcomes rather than routine interventions by the central bank.
Cardoso also disclosed that Nigeria’s net foreign-exchange reserves had risen above $40 billion from just over $3 billion at the beginning of the reform programme, while gross reserves had reached approximately $52 billion.
Muda Yusuf, chief executive officer of the Centre for the Promotion of Private Enterprise, said the higher international card limits were another indication that liquidity and confidence in Nigeria’s FX market had improved significantly.
According to Yusuf, the stability of the exchange rate and improvement in foreign reserves are among the factors supporting the renewed confidence.
He said businesses and individuals were no longer under the same pressure to secure foreign currency for legitimate international transactions as they were during the period of severe dollar shortages.
The improvement, he added, means Nigerians using foreign exchange for international travel, education, trade and other legitimate purposes can increasingly access dollars without the anxiety and desperation that characterised the market in previous years.
Yusuf said the decision by banks to raise international spending limits demonstrates their growing confidence in the sustainability of the CBN’s FX reforms.
He expressed optimism that the positive developments could continue if the reforms are sustained.
The increase in card spending limits is part of broader changes introduced by the CBN to deepen Nigeria’s foreign-exchange market and improve access to foreign currency.
The CBN Foreign Exchange Manual, Fourth Edition, now provides for a maximum tuition remittance of $25,000 per semester for Nigerian students pursuing undergraduate and postgraduate studies abroad.
The manual states that payment of tuition fees for undergraduate and postgraduate studies is subject to a maximum limit of $25,000 per semester.
For Nigerian consumers and businesses, the latest adjustments could represent a significant improvement in access to international payment channels, while for banks, the higher limits could boost card transaction volumes and fee income.
The key test, however, will be whether the improved liquidity and exchange-rate stability can be sustained over the longer term.
