To address the ongoing foreign exchange challenges, the Central Bank of Nigeria (CBN) has announced a significant policy shift regarding Personal and Business Travel Allowances (PTA/BTA), stipulating that payments will now be exclusively processed through electronic channels.
Hassan Mahmud, the Director of the Trade and Exchange Department at the CBN, outlined the new directive in a circular issued on February 14, 2024.
The circular, titled ‘Allowable Channels For Payout Of Personal Travel Allowance (PTA) And Business Travel Allowance (BTA),’ emphasizes the move towards electronic transactions.
“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),” the circular partly read.
“In line with the Bank’s commitment to ensure transparency and stability in the foreign exchange market and avoid foreign exchange malpractices, All Authorised Dealer Banks shall henceforth effect payout of PTA/BTA through electronic channels only. including debit or credit cards.”
DNTWOK understands this measure aims to enhance transparency, stability, and curb malpractices in the foreign exchange market.
The CBN has instructed all authorized dealers and the public to adhere strictly to the new policy guidelines.
