The Central Bank of Nigeria (CBN) has directed all authorised dealer banks to discontinue the payment of Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) in cash.
The directive was contained in a circular signed by Dr Hassan Mahmud, the Director of the Trade and Exchange Department.
The CBN said going forward, these allowances must only be processed through electronic channels, including debit or credit cards.
The circular read: “Memorandum 8 of the Foreign Exchange manual and the circular with reference FMD/DIR/CIR/GEN/08/003 dated February 20, 2017, stipulate the eligibility criteria for accessing Personal and Business Travel allowances (PTA/BTA)
“In line with the Bank’s commitment to ensure transparency and stability in the foreign exchange market and avoid foreign exchange malpractices, All Authorized Dealer Banks shall henceforth effect payout of PTA/BTA through electronic channels only, including debit or credit cards.
“For the avoidance of doubt, payment of PTA/BTA by cash is no longer permitted.
“Authorized Dealers and the general public are hereby to note and comply accordingly.”
The new policy is one of many by the CBN in the last few weeks, aimed at engendering transparency and stability in the foreign exchange market while curbing forex malpractices.