The Central Bank of Nigeria (CBN) has mandated that Personal Travel Allowance (PTA) and Basic Travel Allowance (BTA) must be transacted solely through electronic channels, disallowing cash payments. This move, outlined in a circular dated February 14, 2024, signed by Hassan Mahmud, the Director of CBN’s Trade and Exchange Department, aims to enhance transparency, stabilize the foreign exchange market, and address the nation’s forex challenges. The circular emphasizes that all authorized dealer banks should exclusively utilize electronic channels, including debit or credit cards, for the disbursement of PTA/BTA.
In a related directive, the CBN has informed international oil companies, through another notice dated February 14, 2024, that they are no longer permitted to remit 100% of their foreign exchange proceeds to their parent companies abroad. This decision, conveyed in a communique signed by Hassan Mahmud, comes in the wake of the House of Representatives’ commitment to investigate non-compliance with CBN regulations on Net Open Position Limits for foreign exchange by banks and financial institutions in the country.
