The policy update, contained in a newly released Frequently Asked Questions on Current Reforms of the BDC Sector, seeks to tighten oversight of retail foreign-exchange transactions while encouraging the use of electronic payment channels.
Under the revised framework, travellers may purchase up to $4,000 in PTA or $5,000 in BTA per quarter. However, only one-quarter of that amount can be issued as cash, while the remaining 75 per cent must be loaded onto a prepaid card. The bank emphasized that all applicants must present the required supporting documents before accessing their travel allowances.
The CBN also clarified provisions for Nigerians travelling abroad for medical treatment. Individuals may obtain up to $5,000 from a BDC to cover medical expenses once they provide the documentation outlined in the guidelines. Should the required amount exceed this limit, customers must seek additional funds from commercial or non-interest banks.
In addition, Nigerians studying overseas — or their sponsors — may source up to $10,000 per year from BDCs for the payment of school fees to foreign institutions, subject to compliance with documentation requirements.
The latest measures form part of a broader reform effort aimed at standardizing BDC operations, reducing cash-based forex transactions, and strengthening accountability across Nigeria’s retail foreign-exchange market.