Nigerian Banks Raise Dollar Spending Limits Amid Forex Gains

Nigerian banks are increasing customers' access to dollar-denominated international transactions as forex liquidity improves, reversing previous restrictions due to dollar shortages. GTBank has raised its quarterly international spending limit on naira cards to $40,000, up from $6,000 in May and $20,000 in August.

FirstBank's Naira Mastercard now allows up to $10,000 quarterly for POS and online transactions, with ATM withdrawals increased to $1,000 daily. Zenith Bank permits international card transactions of up to $50,000 annually, while Stanbic IBTC has increased its quarterly limit to $8,000.

UBA also offers substantial international spending through dollar-linked card products. Olubunmi Ayokunle, Head of Financial Institutions Rating at Agusto & Co, noted that banks previously could not offer higher limits due to insufficient dollar liquidity.

Dr Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, welcomed the changes but cautioned that regulators should monitor for potential abuses, including money laundering and unusual dollar demand.