The Central Bank of Nigeria (Central Bank of Nigeria) has adjusted its foreign exchange framework, introducing a partial cash option for Personal Travel Allowance (PTA) and Business Travel Allowance (BTA), marking a notable shift from its earlier fully cashless policy.
The update was unveiled on Friday in Abuja during the launch of the 4th Edition of the Foreign Exchange (FX) Manual, a key policy document guiding FX operations in the country.
Under the revised arrangement, 75% of PTA and BTA disbursements will now be made electronically, while the remaining 25% may be paid in cash. This represents a softening of the strict electronic-only system introduced in 2024, when all such payments were mandated to go through digital channels.
Officials say the adjustment is intended to align travel-related FX disbursements with updated Bureau De Change rules, while also reducing operational delays and easing access for banks, corporates, and other authorized FX participants.
Explaining the policy direction, Deputy Governor, Economic Policy Directorate, Dr. Muhammad Abdullahi, said the changes are part of broader efforts to streamline foreign exchange administration and improve system efficiency.
“Under the revised structure, 75% of PTA and BTA will be disbursed electronically, while 25% may be paid in cash,” he stated.
Beyond travel allowances, the updated manual introduces wider reforms across the FX ecosystem. These include an increase in advance import payments from 15% to 30%, free processing of Form NXP, and new provisions covering service exports, PAPSS transactions, and non-resident investment accounts.
It also expands flexibility in foreign payments, allowing tuition fees for both undergraduate and postgraduate studies up to $25,000 per semester, alongside permissions for services and charges denominated in foreign currency.
The CBN says these reforms are designed to align Nigeria’s FX system with global best practices while improving transparency, clarity, and operational efficiency.
The revised manual is set to take effect on June 1, 2026, replacing the 2018 edition and forming part of a broader reform agenda under the leadership of Governor Olayemi Cardoso.
According to the apex bank, the framework strengthens macroeconomic stability and enhances investor confidence, while reinforcing Nigeria’s ongoing transition toward a more efficient and regulated FX market.
Despite the partial return of cash access for travel allowances, the CBN emphasized continued monitoring to ensure compliance and safeguard the integrity of the foreign exchange system.