The Central Bank of Nigeria (CBN) has issued a directive to commercial banks, instructing them to cease cash payments for Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) as part of efforts to curb foreign exchange malpractices.
The CBN emphasized that payment of PTA/BTA by cash is no longer permitted and that authorized dealers and the public should comply accordingly.
According to the CBN’s memo, the directive aims to enhance transparency and prevent foreign exchange malpractices.
PTA and BTA payments are now mandated to be made exclusively through electronic channels, including debit or credit cards.
The move comes as Nigeria grapples with a declining value of the naira against the dollar, reaching N1,600 per $1.
Despite various efforts by the CBN to stabilize the national currency, the naira has faced significant challenges, with concerns raised about the effectiveness of policies introduced under President Bola Tinubu.
”The decision to discontinue cash payments for travel allowances aligns with the CBN’s commitment to ensuring transparency and stability in the foreign exchange market,” a statement from the apex bank noted.
