Nigerian banks have commenced a review of dollar request processing time for school fees, upkeep and rent payment, following dollar shortages.
This, according to the banks, was due to limited foreign exchange availability provided by the Central Bank of Nigeria (CBN).
Consequently, some banks require a 30-day period to fulfil requests for foreign exchange needs for school fees, upkeep and rent payment. This was supposed to be consummated within 24 hours after filling a CBN approved documentation known as Form M.
“In line with our commitment to giving you the best banking experience, we are pleased to provide the following important updates on your forex needs for international school fees, upkeep payments and Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) requests. All requests are reviewed to ensure they meet regulatory requirements,” Access Bank said in a notice to customers titled, ‘Important Update on FX Transactions’.
“However, for PTA/BTA, we request that you submit your application 14 days before your proposed travel date to allow disbursement within the timeline,” the ban said.
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The CBN in November 2021 informed all authorized dealers and the general public of the deployment of e-Form ‘A’.
Form ‘A’, according to GTCO, is an application form designed by the Central Bank of Nigeria to pay for service transactions (invisible trade).
The form allows customers to purchase foreign exchange at the CBN or interbank rate to make payments for eligible services.
Such eligible services include Basic Travel Allowance (BTA), Personal Travel Allowance (PTA), medical and tuition, among others.
Prior to the deployment of the electronic Form ‘A’, banks were ensured that they hold adequate stock of these forms which can be obtained from the Foreign Exchange Management Office, Trade & Exchange Department, Central Bank of Nigeria, Abuja, except the Forms TE & TM which are to be collected from the Nigeria Customs Service or the Nigeria Immigration Service.
The foreign exchange forms were duly completed in accordance with the instructions on each form. One of the risks associated with the traditional Form ‘A’ requirement for accessing foreign exchange was the ability of the banks to manipulate the transaction.
In a circular to all authorised dealers signed by O.S Nnaji, director trade exchange department, the CBN said that the processing of Form ‘A’ shall only be done electronically on the Trade Monitoring System accessible at www.tradesystem.gov.ng.
