The Central Bank of Nigeria (CBN) has revised its regulations on Personal Travel Allowance (PTA) and Business Travel Allowance (BTA), permitting 25% of the disbursement to be paid in cash, with the remaining 75% processed electronically.
The policy update was announced on Friday during the launch of the 4th Edition of the Foreign Exchange (FX) Manual in Abuja.
Previously, all PTA and BTA payments were required to be processed exclusively through electronic channels, including debit and credit cards.
According to the CBN, the revision harmonizes PTA and BTA disbursements with the updated Bureau De Change guidelines, aiming to reduce operational bottlenecks and improve efficiency for authorized dealers, corporates, and FX stakeholders.
What the CBN is saying
Deputy Governor, Economic Policy Directorate, Dr. Muhammad Abdullahi, explained that the manual also introduced several additional measures to streamline FX transactions.
- “Under the revised structure, 75% of PTA and BTA will be disbursed electronically, while 25% may be paid in cash.”
The manual includes an increase in allowable advance payments for imports from 15% to 30%, free processing of Form NXP, and provisions for service exports, PAPSS transactions, and non-resident investment accounts.
It also allows tuition fee payments for undergraduate and postgraduate studies up to $25,000 per semester and permits payments for services and charges generated in foreign currency.
The update is designed to align with international best practices while improving clarity, transparency, and operational efficiency in the FX market.
Get up to speed
In 2024, the CBN directed that all PTA and BTA payments be processed solely through electronic channels to enhance transparency and prevent FX malpractices. Cash disbursements were prohibited at the time.
- The new 25% cash option represents a partial relaxation of that policy.
- The revision coincides with broader FX reforms reflected in the 4th Edition FX Manual, which is set to take effect on June 1, 2026.
- Export proceeds holders and ordinary domiciliary account holders now enjoy unrestricted access, and Form A is no longer required for domiciliary remittances.
The manual is available to authorized dealers at no cost, and CBN has emphasized ongoing monitoring to ensure accountability and compliance across the FX system.
What you should know
CBN Governor Olayemi Cardoso highlighted that the updated manual strengthens Nigeria’s macroeconomic foundations and enhances market transparency.
- The 4th Edition FX Manual replaces the 2018 version, providing a forward-looking regulatory framework aligned with global and domestic economic developments.
- The revisions aim to increase market efficiency, support investor confidence, and reinforce Nigeria’s cashless and digital payment objectives.
The partial cash allowance for PTA and BTA marks a significant adjustment in Nigeria’s FX policy, balancing operational flexibility with regulatory oversight.
