The Central Bank of Nigeria (CBN) has directed all authorised dealer banks to stop the payout of Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) in cash.
The apex bank made this announcement on Thursday.
Read also: Nigerian banks create dollar debit cards for PTA, BTA payments
“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 CBN said .
It added: “For the avoidance of doubt, payment of PTA/BTA by cash is no longer permitted”.
In a circular signed by Hassan Mahmud, the director of the Trade and Exchange Department, the CBN said the decision aims to improve transparency and stability in the foreign exchange market while curbing forex malpractices.
The Bank wants these allowances to be processed through electronic channels, including debit or credit cards forthwith.
The policy, which underscores the CBN’s commitment to enforcing compliance and adapting to electronic means for accessing travel allowances, marks a pivotal shift in how foreign currency transactions are handled for travel purposes.
