Naira Devaluation: “Travel Allowances By Cash No Longer Permitted” — CBN

The Central Bank of Nigeria, has directed all authorized dealer banks to stop the payout of Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) in cash amid the free fall of the Naira in the foreign exchange market.

The Director of Trade and Exchange Department at the apex bank, Hassan Mahmud, made this known in a circular dated February 14, 2024.

CBN disclosed that the PTA and BTA allowances must now be processed through electronic channels, including debit or credit cards, instead of cash payment.

The circular reads: “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).

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“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 now to note and comply accordingly.”