The Central Bank of Nigeria (CBN) has announced a significant policy change, directing all authorised dealer banks to cease the payout of Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) in cash.
Instead, these allowances must now be processed through electronic channels, including debit or credit cards.
This directive, signed by Dr. Hassan Mahmud, the Director of the Trade and Exchange Department, aims to bolster transparency and stability in the foreign exchange market while curbing forex malpractices.
The policy underscores the CBN’s commitment to enforcing compliance and adapting to electronic means for accessing travel allowances, marking a pivotal shift in how foreign currency transactions are handled for travel purposes.
The circular read: “Memorandum 8 of the Foreign Exchange manual and the circular with reference FMD/DIR/CIR/GEN/08/003 dated February 20, 2017, stipulate the eligibility criteria for accessing Personal and Business Travel allowances (PTA/BTA)
“In line with the Bank’s commitment to ensure transparency and stability in the foreign exchange market and avoid foreign exchange malpractices, All Authorized Dealer Banks shall henceforth effect payout of PTA/BTA through electronic channels only, including debit or credit cards.
“For the avoidance of doubt, payment of PTA/BTA by cash is no longer permitted.
“Authorized Dealers and the general public are hereby to note and comply accordingly.”
Also, the apex bank has issued fresh guidelines on remittance of proceeds of crude exports by International Oil Companies (IOCs) operation in the country.
In a circular signed by the apex bank’s Director of Trade and Exchange, Hassan Mahmud, the practice known as “cash polling” has an impact on liquidity in the domestic forex market.
According to the new guidelines, IOCs will now be allowed to repatriate only 50 per cent of their proceeds immediately while the other 50 per cent will be repatriated 90 days from the day of inflow.
