Deposit Money Banks (DMBs) are increasing the limit that naira cardholders can spend abroad, following improved dollar liquidity in the financial system. After a series of financial sector reforms and the clearance of a $7 billion foreign exchange (FX) backlog by the Central Bank of Nigeria (CBN) under Olayemi Cardoso, governor of the CBN, inflows into the economy have continued to rise, reaching $112 billion by the end of 2025.
The increase in autonomous FX inflows, foreign portfolio investments, and non-oil export proceeds has enabled local banks to expand international spending limits on naira cards while also supporting foreign direct investment (FDI) inflows into the domestic economy.
Before the Olayemi Cardoso-led management team assumed office in October 2023, one of the most pressing challenges confronting Nigeria’s economy was foreign exchange scarcity. Businesses and travelers were often forced to rely on the parallel market to source foreign currency, creating an environment that encouraged speculation and market distortions.
To address the situation, the CBN embarked on a series of reforms aimed at attracting foreign capital, improving price stability, and stabilising the exchange rate. Among its key initiatives were the liberalisation of the foreign exchange market and the discontinuation of Central Bank financing of fiscal deficits. These measures helped restore investor confidence, enabling Nigeria to return successfully to international capital markets last December and secure upgrades from major rating agencies.
