BY EDMOND ODOK – It is no cheering news for many travelers as the Central Bank of Nigeria (CBN) has stopped the payment of Basic Travel Allowance (BTA) and Personal Travel Allowance (PTA) in cash dollars.
Effective immediately, the move is meant to promote transparency and stability in the foreign exchange market while preventing malpractices.
In taking the decision, the apex Bank referred to memorandum 8 of the foreign exchange manual and circular FMD/DIR/CIR/GEN/08/003 dated February 20, 2017, in which the trade and exchange department of CBN outlined the eligibility criteria for accessing PTA/BTA.
It also said that all Authorized Dealer Banks are mandated to process payouts of PTA/BTA exclusively through electronic channels, which include debit or credit cards, with the circular further stating that the traditional method of cash disbursement for these allowances is no longer permissible.
Signed by Hassan Mahmud, Director of the Trade and Exchange Department, the latest directive underscores the CBN’s commitment to enhancing accountability and efficiency within the foreign exchange market, even as authorized dealers and the public are urged to adhere to these guidelines accordingly.
Going forward, all stakeholders are encouraged to always consult the official communication from the Central Bank of Nigeria for further details and compliance.
