‘Quick-Money' Nigerian Crypto Platform's Withdrawal Plan Met With Suspicion
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Nigerian banks resume international naira card transactions amid FX market confidence
After nearly three years of suspension, Nigerian banks have reactivated international transactions on their naira-denominated debit cards. Nigerian banks have resumed international transactions with naira-denominated debit cards after a three-year suspension. This decision reflects increased confidence in Nigeria's foreign exchange market and recent monetary policy reforms. The move is expected to relieve Nigerians relying on these cards for global payments and encourage similar actions by other banks. This significant reversal reflects growing confidence in Nigeria's foreign exchange market, the impact of monetary policy reforms, and renewed activity by Nigerian banks and bank cards in facilitating cross-border transactions. In a separate communique to customers this week, both banks confirmed the resumption of international use of their naira Mastercard and Visa cards, a move that could provide relief to millions of Nigerians who rely on these cards for global payments, subscriptions, and online purchases. United Bank for Africa (UBA) chaired by Tony Elumelu, announced that its premium naira cards, including Gold, Platinum, and World variants, can now be used internationally across ATMs, PoS machines, and online platforms. 'In line with our continued commitment to providing you with seamless and enhanced banking experiences, we are pleased to inform you that all UBA Premium Naira Cards and world variants are now enabled for international transactions, ' the statement reads 'This means you can now use your Premium Naira Card for everyday payments, online shopping, PoS, and ATM transactions across the world, with more ease and flexibility. ' UBA added. The bank's move is particularly notable given its extensive customer base across Africa and the diaspora. Industry analysts say the reactivation of naira cards signals a return of trust in the FX system and a softening of restrictions once deemed necessary to manage volatility. Wema Bank also confirmed the resumption of international access for its naira Mastercard, Visa, and ALAT cards. The bank told customers: 'Your Wema Naira Mastercard just went global! Now you can pay in dollars on all your favourite international platforms; Amazon, eBay, AliExpress, Netflix, Spotify, YouTube.' Financial experts attribute this policy shift to improved FX liquidity, narrowing arbitrage margins, and recent CBN reforms. Charles Sanni, CEO of Cowry Treasurers, supports this view, noting that the appreciation of the naira, reduced interest in FX speculation, and increased diaspora remittances have all contributed to improved FX conditions. ' The spread between official and parallel market rates has thinned out, may have influenced the decision by the banks' 'The naira has also continued to appreciate against the other major currencies of the world. More so, there has been increased diaspora remittances based on the new policy of the Central Bank of Nigeria (CBN) on opening of accounts for non-residents, particularly Nigerians in diaspora,' Sanni added. He cited additional drivers such as improved Nigeria credit ratings, clearing of FX backlogs, geopolitical oil price boosts, and the recapitalisation of Nigerian banks. Between July 2022 and January 2023, major Nigerian banks, including GTBank, Zenith Bank, First Bank, and Standard Chartered, suspended international transactions on naira cards due to a severe FX crisis. At the time, banks such as GTBank informed customers that their naira Mastercards would no longer work for foreign online or PoS transactions, encouraging them to instead open dollar accounts. First Bank made a similar move in September 2022, stating: 'Due to current market realities on foreign exchange, you will no longer be able to use the Naira Mastercard, Naira Credit Card, our Virtual card, and Visa Prepaid Naira card for international transactions.' Fintech platforms such as Flutterwave and Eversend reportedly suspended virtual cards during the peak of the crisis. What This Means for Nigerians With UBA and Wema Bank leading the way in restoring access, pressure may now mount on other banks to follow suit, especially if FX conditions continue to improve under current policy direction.
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London mayor to visit Lagos, 3 other African cities as part of UK-Africa engagement
London Mayor Sadiq Khan is set to undertake a historic trade mission to Africa, aimed at strengthening ties between the UK capital and key economies on the continent. London Mayor Sadiq Khan is embarking on a historic trade mission to Africa, focusing on enhancing ties with major cities Khan's itinerary includes visits to Lagos, Accra, Johannesburg, and Cape Town, recognized as economic and cultural hubs. The visit marks the first official African trade mission by a London Mayor, highlighting a commitment to fostering global partnerships. London Mayor Sadiq Khan is set to visit four major African cities - Lagos, Accra, Johannesburg, and Cape Town as part of a UK-Africa engagement tour aimed at strengthening trade, investment, and cultural cooperation between the United Kingdom and the African continent. The tour reflects London's growing commitment to deepening global relationships beyond Europe and will celebrate both the historical and contemporary connections between the UK capital and Africa. According to City Hall, the visit aims to highlight the contributions of African communities to London's diversity and economy while forging new partnerships in business, technology, and the creative industries. Speaking on his official X profile, Khan confirmed his travel plans, saying, ' Lagos, Accra, Johannesburg and Cape Town; These will be my stops later this month on the first trade mission to Africa by a Mayor of London.' The announcement follows his recent visit to Flygerians, a Nigerian restaurant in Peckham, where he met with business owners to witness first-hand the contributions of African entrepreneurs to the city's economy. Africa's big economies on target The Africa trip, first announced in December last year, is part of a strategic trade and diplomatic outreach aimed at deepening business, environmental, and cultural ties between London and key African economies. Mayor Sadiq Khan's itinerary will take him to four major commercial hubs across Nigeria (Lagos), Ghana (Accra), and South Africa (Cape Town and Johannesburg), cities regarded as some of Africa's most dynamic economic centers. His visit will include high-level meetings with political and business leaders, as well as engagements with cultural institutions and members of the African diaspora. Sir Sadiq Khan said: 'I'm delighted to announce that later this month I will be visiting Nigeria, Ghana and South Africa to bang the drum for further investment in London and strengthen the cultural ties we have with each country." 'With growing populations, rapidly advancing technology hubs and an appetite for boosting our trading relationships, this trade mission will be a fantastic opportunity to drive further investment here in London and further deepen our partnerships.' In Nigeria and Ghana, West Africa's largest economies, Khan is expected to pursue new partnerships in technology, fintech, education, and infrastructure. Meanwhile, in South Africa, the UK's largest trading partner on the continent, the focus will be on green investment and fostering city-to-city cooperation on urban sustainability and innovation.
