TheCable

The Central Bank of Nigeria (CBN) says payment of personal travel allowance (PTA) and business travel allowance (BTA) in cash is no longer permitted.

CBN disclosed this on Thursday, in a circular titled ‘Allowable Channels For Payout Of Personal Travel Allowance (PTA) And Business Travel Allowance (BTA)’.

In the notice signed by Hassan Mahmud, its director of trade and exchange department, CBN said banks are to stop the payment in cash and adopt electronic transfers.

According to CBN, the new move is to ensure stability and promote transparency.

“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),” CBN said.

“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.”

Since the beginning of 2024, the apex bank has introduced new policies to control the volatility in the foreign exchange market and boost FX inflows

One of which, is the directive to international money transfer operators (IMTOs) by the CBN released on January  31, 2024.

The financial regulator said IMTOs will no longer facilitate money transfers from Nigeria to other countries.

CBN also directed IMTOs to quote exchange rates for naira payout to beneficiaries based on the prevailing market rates at the official foreign exchange market.