FX scarcity: banks review dollar processing time for school fees, others

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.

The CBN in November 2021 informed all authorized dealers and the general public of the deployment of e-Form ‘A’.

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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.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.