December 11, (THEWILL) — The Central Bank of Nigeria (CBN) has introduced a new directive limiting the cash component of Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) disbursements to 25 percent of the total approved amount. The remaining 75 percent is now required to be paid via electronic channels such as debit cards or direct transfers.
In a circular issued to all authorised dealers, the apex bank said the policy aims to reduce cash exposure in the foreign exchange ecosystem, enhancing transparency, and aligning Nigeria’s FX management practices with global standards.
According to the CBN, the revised modality will help curb the diversion of FX, minimise abuses associated with cash-based disbursements, and improve traceability of foreign exchange transactions. Banks are now required to strictly comply by issuing internationally accepted debit cards to travellers or making direct payments to their verified travel accounts.
The circular also reiterates that applicants for PTA and BTA must provide valid travel documents, evidence of booked international tickets, and satisfy all Know Your Customer (KYC) requirements before accessing FX.
Travellers and businesses have expressed mixed reactions to the policy. Some argue that reducing cash allocation could create challenges in destinations where card use is limited, while others welcome the move as a step toward sanitising the FX market and reducing arbitrage opportunities.
The CBN maintained that the policy takes immediate effect, urging all authorised dealers to ensure full implementation and warning that non-compliance would attract sanctions.
Ogochukwu Onwaeze
