The Central Bank of Nigeria (CBN) has prohibited the use of cash as Personal Travel Allowance (PTA) and Basic Travel Allowance (BTA).
According to the CBN, PTA and BTA would, henceforth, only be paid through electronic channels.
The apex bank noted that the move is part of efforts to ensure transparency and stability in the foreign exchange market and address the nation’s foreign exchange crisis.
This development was made known in a circular dated February 14, 2024, which was signed by the CBN Director of Trade and Exchange Department, Hassan Mahmud.
The circular titled, ‘Allowable Channels for Payout of Personal Travel Allowance (PTA) And Business Travel Allowance (BTA)’ reads in part: “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 Authorised Dealer Banks shall henceforth effect payout of PTA/BTA through electronic channels only including debit or credit cards.”
The CBN called on all authorised dealers and the general public to note the new directive and ensure compliance.
CBN Bars Int’l Oil Firms From Remitting 100% Forex Proceeds Abroad
The Central Bank of Nigeria (CBN) has issued a notice, dated February 14, 2024, informing international oil companies that they are no longer permitted to repatriate 100% of their foreign exchange proceeds to their parent companies abroad.
The apex bank’s directive was contained in a communique signed and released by its Director of Trade and Exchange Department, Hassan Mahmud, Naija News reports.
The latest development came a week after the House of Representatives vowed to probe banks and financial institutions in the country for failing to comply with Central Bank of Nigeria (CBN) regulations on Net Open Position Limits for foreign exchange.
Moving a motion of urgent public importance for the probe last week, Babajimi Johnson (APC, Lagos) explained that Sections 8 (4) and (5) of the CBN Act require the CBN Governor to brief the relevant Committees of the National Assembly during semi-annual hearings and to provide periodic reports on the economy’s performance to the Assembly.
