In an effort to lessen the demand for dollars in the nation, the Central Bank of Nigeria (CBN) has ordered banks to cease paying personal and business travel allowances (PTA/BTA) in cash.
While many banks currently pay consumers in cash, some previously only paid into domiciliary accounts or foreign exchange-denominated cards.
However, the directive takes effect immediately, according to a circular signed by Dr. Hassan Mahmud, the CBN’s Director of Trade and Exchange, and distributed on Thursday to all approved dealer banks. The circular was headlined “Allowable Channels for Payout of PTA and BTA.”
The circular stated that “memorandum 8 of the foreign exchange maul 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 o doubt payment of PTA/BTA by cash is no longer permitted. Authorized dealers and the general public are hereby to note and comply accordingly.”