The Central Bank of Nigeria (CBN) has revised its Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) policy, allowing 25 per cent of approved foreign exchange requests to be paid in cash, while the remaining 75 per cent will continue to be processed electronically.
The policy shift was unveiled on Friday during the launch of the 4th Edition of the Foreign Exchange (FX) Manual in Abuja.
Under the previous framework introduced in 2024, all PTA and BTA transactions were restricted to electronic channels such as debit and credit cards in a bid to improve transparency and curb foreign exchange abuses.
Explaining the latest changes, the CBN said the revised arrangement aligns PTA and BTA disbursements with updated Bureau De Change guidelines and is aimed at easing operational bottlenecks across the FX market.
Deputy Governor, Economic Policy Directorate, Dr. Muhammad Abdullahi, said the new framework would enhance efficiency for authorised dealers, corporates, and other FX market participants.
“Under the revised structure, 75 per cent of PTA and BTA will be disbursed electronically, while 25 per cent may be paid in cash,” he said.
Beyond the travel allowance adjustment, the updated FX Manual introduced several reforms targeted at improving flexibility and transparency in foreign exchange operations.
The manual increased the allowable advance payment for imports from 15 per cent to 30 per cent and approved free processing of Form NXP.
It also introduced provisions covering service exports, Pan-African Payment and Settlement System (PAPSS) transactions, non-resident investment accounts, and foreign currency-denominated service payments.
In addition, the CBN approved tuition fee payments of up to $25,000 per semester for undergraduate and postgraduate studies abroad.
The apex bank said the revised framework was designed to align Nigeria’s FX operations with international best practices while improving clarity, operational efficiency, and market transparency.
The new guidelines, which take effect from June 1, 2026, also grant export proceeds holders and ordinary domiciliary account holders unrestricted access to their funds, while removing the requirement for Form A in domiciliary remittances.
CBN Governor Olayemi Cardoso said the revised manual strengthens Nigeria’s macroeconomic framework and supports ongoing reforms aimed at boosting investor confidence and improving market stability.
The 4th Edition FX Manual replaces the 2018 version and provides what the CBN described as a forward-looking regulatory framework reflecting both domestic and global economic realities.
The partial reintroduction of cash disbursement for PTA and BTA marks a significant adjustment to Nigeria’s FX policy, balancing operational flexibility with tighter regulatory oversight.
