The Central Bank of Nigeria (CBN) has announced that it will no longer allow dollar cash payments for Business Travel Allowance (BTA) and Personal Travel Allowance (PTA).
Henceforth, all such allowances must be processed through electronic channels, including debit or credit cards, the apex bank said.
The directive, according to a circular signed by the Director of Trade and Exchange Department, Dr. Hassan Mahmud, aims to bolster transparency and stability in the foreign exchange market while curbing forex malpractices.
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 the payout of PTA and 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.”
Persecondnews recalls that the CBN Governor, Mr. Yemi Cardoso, recently attributed the significant foreign exchange challenges facing Nigeria to the substantial amounts spent on foreign education and medical tourism.
Cardoso, who made the claim in a presentation to the House of Representatives, revealed that about $40 billion has been invested in these sectors, contributing to the naira’s depreciation to over N1,400 in the official market.
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