-New policy emphasizes prepaid cards and digital transfers to modernize forex access*
The Central Bank of Nigeria (CBN) has announced a significant shift in the disbursement of foreign exchange for travel-related purposes, capping cash payouts for Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) at just 25% of the total allocation.
According to a newly released document, “Frequently Asked Questions on Current Reforms of the BDC Sector” travelers will now receive a maximum of 25% of their approved foreign currency in cash, with the remaining 75% transferred directly to a prepaid card.
The move is part of the CBN’s broader effort to enhance transparency and reduce physical cash handling in the foreign exchange market. Under the updated guidelines, Nigerian travelers can access up to $4,000 per quarter for personal travel and $5,000 for business purposes.
The bank emphasized that all applicants must provide complete documentation to access these allowances.
In addition to standard travel allowances, the CBN has outlined special provisions for medical and educational expenses. Nigerians traveling abroad for medical treatment may obtain up to $5,000 annually through Bureau De Change (BDC) outlets, provided they submit the required paperwork. For costs exceeding this limit, individuals are directed to commercial or non-interest banks for the remaining amount.
Similarly, students studying overseas—or their sponsors—can access up to $10,000 per year for tuition and related expenses through BDCs, subject to submission of approved documents.
Industry observers note that this reform aligns with the CBN’s push toward a more digitized and regulated foreign exchange ecosystem, potentially reducing opportunities for illicit cash movements and promoting the use of formal banking channels.
The policy is expected to impact thousands of travelers and businesses reliant on physical forex access, signaling a new phase in Nigeria’s forex management strategy.
