Authorized payment channels for Personal Travel Allowances (PTA) and Business Travel Allowances (BTA) are evolving in Nigeria. The Central Bank of Nigeria (CBN) recently announced that applicants for these benefits will have to be paid exclusively through electronic channels rather than in cash.
The move, announced by Hassan Mahmud, Director of the CBN’s Trade and Commerce Department, is driven by the central bank’s commitment to ensuring transparency and preventing malpractices in the foreign exchange market.
The CBN highlighted that this measure is in line with Memorandum 8 of the Foreign Exchange Manual and Circular dated February 20, 2017, which stipulates the eligibility criteria for obtaining personal and business travel allowances.
From now on, all banks authorized to carry out foreign exchange transactions will have to make electronic payments for these allocations, including debit or credit cards.
The move is the latest in a series of interventions by the CBN aimed at resolving the country’s foreign exchange crisis. Indeed, since the CBN introduced a floating policy to liberalize the foreign exchange market, the naira has continued to depreciate.
This move towards electronic payment channels aims to ensure greater transparency and combat malpractices in the Nigerian foreign exchange market. It will also make it easier for travel grant applicants, providing them with more convenient and secure options for receiving their money.
By adopting this measure, the CBN hopes to promote stability and avoid manipulation in the foreign exchange market, thereby improving the country’s economic prospects.
This move by the CBN is a step forward in the modernization of Nigeria’s financial sector and demonstrates its commitment to comply with international standards in electronic payments. This is a necessary step to support the rapid evolution of the global financial landscape and facilitate international transactions.
In conclusion, the move to electronic payment channels for personal and business travel allowances in Nigeria is a positive move that aims to enhance transparency and efficiency in the foreign exchange market. This measure is expected to benefit both the users of these allocations and the Nigerian economy as a whole.