Guaranty Trust Bank (GTBank) increased its foreign spend limit on Naira debit cards by 100%, raising the annual cap to $40,000. The upward adjustment reflects improving foreign exchange liquidity across domestic commercial banks following central bank market intervention strategies.
The increase is a sign that the foreign exchange situation is improving. The CBN’s interventions have boosted liquidity, and banks are now able to offer higher limits to their customers. For cardholders, the increased limit means greater flexibility for international transactions.
This echoes the 2022 foreign exchange restrictions, which saw banks lower their limits. The mechanism then was different, but the result was the same: a reflection of the country’s foreign exchange situation.
The winners: GTBank cardholders, who can now spend more abroad; and the Nigerian economy, which benefits from improved FX liquidity. The losers: the Nigerian government, which must ensure the liquidity is sustained; and the Nigerian public, who must hope the situation continues to improve.
Bottom Line: GTBank has doubled its debit card spend limit. FX liquidity is improving. The question is whether other banks will follow suit.