CBN Orders Restriction of Dollar Payments For Personal And Business Travel Allowances
The Central Bank of Nigeria (CBN) has announced the discontinuation of cash payments for Personal and Business Travel allowances (PTA/BTA).
This directive, communicated via a circular addressed to all authorized banks and signed by Hassan Mahmud, the Director of the Trade and Exchange Department, mandates all banks to process these allowances solely through electronic channels. This measure aims to enhance transparency and accountability in the forex market.
The circular reads,
“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.”
The CBN urged all authorised dealers and the public to adhere to this directive promptly to facilitate a seamless transition to electronic payouts.
Notably, to address the forex scarcity and protect the Naira’s value, the CBN has revised the operations of International Money Transfer Operators (IMTOs), restricting them to inbound transfers only and mandating that international transfers be paid out in Naira.
