Forex Crisis: CBN Prohibits Payment of BTA, PTA in Cash

The Central Bank of Nigeria (CBN) has directed authorised foreign exchange (FX) traders, particularly commercial banks, from disbursing cash to customers for Business Travel Allowance (BTA) and Personal Travel Allowance (PTA).

In a circular dated Wednesday, February 14, 2024, the apex bank emphasised that henceforth, the BTA and PTA would be paid to customers through electronic channels.

This is the latest step taken by the central bank to address the FX crisis crumbling the economy of Nigeria, as many have found the Dollar as a good store of value instead of the local currency, the Naira.

In the notice signed by the Director of Trade and Exchange Department at the CBN, Mr Hassan Mahmud, the central bank “directed all authorised dealers and the general public to note and comply accordingly.”

“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,” the circular titled Allowable Channels for Payout of Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) read.