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The Central Bank of Nigeria (CBN) has issued a significant policy adjustment, mandating all approved banks to halt the distribution of cash for Personal Travel Allowance (PTA) and Business Travel Allowance (BTA).
Effective immediately, the processing of these allowances must be conducted electronically, specifically through debit cards or credit cards, in compliance with existing regulations.
Dr. Hassan Mahmud, Director of the Trade and Exchange Department, has spearheaded this directive to uphold integrity and stability in the foreign exchange market, while also curbing unethical foreign exchange activities.
Signed by Dr. Mahmud, the directive underscores the CBN’s commitment to enhancing transparency and ensuring stability in the foreign exchange market, as well as preventing fraudulent or improper practices related to forex transactions.
This adjustment reflects the CBN’s ongoing efforts to modernize and streamline foreign exchange operations, aligning with global best practices and leveraging electronic payment systems for greater efficiency and transparency.
By transitioning to electronic processing for PTAs and BTAs, the CBN aims to eliminate the risks associated with cash handling, mitigate the potential for misuse or diversion of funds, and enhance the traceability and accountability of foreign exchange transactions.
The move also aligns with broader efforts to promote financial inclusion and encourage the adoption of electronic payment solutions across various sectors of the Nigerian economy.
Banks and financial institutions are urged to swiftly implement these changes and ensure seamless transition to electronic processing methods for PTAs and BTAs, in compliance with the CBN’s directive.
This policy adjustment marks a pivotal step in the CBN’s ongoing efforts to strengthen Nigeria’s foreign exchange management framework and foster a more transparent, efficient, and accountable financial system.
