Travel allowances by cash no longer permitted — CBN

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The Central Bank of Nigeria (CBN) has declared that from now on, Personal and Basic Travel Allowances will exclusively be disbursed through electronic channels, eliminating cash transactions.

The directive was issued by Hassan Mahmud, the Director of the Trade and Exchange Department at the CBN, in a circular dated February 14, 2024. The CBN has instructed all authorized dealers and the general public to take note of this directive and adhere to it accordingly.

The circular titled, ‘Allowable Channels For Payout Of Personal Travel Allowance (PTA) And Business Travel Allowance (BTA)’ read;

“Memorandum 8 of the Foreign Exchange manual and the circular with reference FMD/DIR/CIR/GEN/08/003 dated February 20, 2017, stipulate the eligibility criteria for accessing Personal and Business Travel allowances (PTA/BTA).

“In line with the Bank’s commitment to ensure transparency and stability in the foreign exchange market and avoid foreign exchange malpractices, All Authorised Dealer Banks shall henceforth effect payout of PTA/BTA through electronic channels only. including debit or credit cards.”