The Central Bank of Nigeria (CBN) has announced a new policy limiting cash payouts for Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) to 25 percent of approved amounts. The remaining 75 percent must be issued through a prepaid card. The directive, revealed in the bank’s newly released Frequently Asked Questions on Current Reforms of the BDC Sector, is part of the ongoing effort to strengthen Nigeria’s foreign exchange management.
According to the CBN, travelers can still access up to $4,000 in PTA or $5,000 in BTA per quarter, but the mode of disbursement has changed. The apex bank explained that travelers may receive only a quarter of the approved forex in physical cash, while the larger portion will be transferred electronically. This move, the CBN says, is designed to promote transparency and reduce cash-based FX leakages.
The central bank also provided updates for Nigerians seeking foreign exchange for medical travel. Individuals traveling abroad for medical purposes can obtain up to $5,000 from any Bureau De Change (BDC), provided they submit the required medical documentation. If medical expenses exceed the limit, customers are advised to approach commercial or non-interest banks for additional funding.
Similarly, the CBN clarified that students studying abroad—or their sponsors—can access up to $10,000 annually from BDCs for the payment of school fees. This allocation is also subject to proper documentation, as outlined in the bank’s guidelines, ensuring that funds reach legitimate educational institutions.
With these new restrictions, the CBN aims to tighten oversight on forex distribution while encouraging digital payment channels. The reforms reflect the regulator’s wider push to stabilize the foreign exchange market, reduce misuse of allowances, and ensure FX availability to genuine travelers, patients, and students.
source: vanguard