The Central Bank of Nigeria, CBN, has directed all authorized dealer banks to cease the payout of Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) in cash amid the free fall of the Naira in the foreign exchange market.
The apex disclosed this in its latest circular signed by Dr Hassan Mahmud, the Trade and Exchange Department Director.
CBN said the PTA and BTA allowances must now be processed through electronic channels, including debit or credit cards, instead of cash payment.
It stated that the move 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 the electronic means for accessing travel allowances, marking a pivotal shift in how foreign currency transactions are handled for travel purposes.
“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 now to note and comply accordingly.”
DAILY POST recalls that despite CBN’s earlier reform intervention, the Naira depreciated to N1503.38 per US dollar on Wednesday.
However, since the Central Bank of Nigeria introduced ‘Financial Markets Price Transparency and Market Notice of a Revision to the FMDQ FX Market Rate Pricing Methodology’ and other reforms on January 29, the country’s exchange rate hovers around N1,400 to over 1,500 per US dollar.
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