On February 14, 2024, Nigeria’s Central Bank (CBN) made a big decision affecting travel payments. They told all banks allowed to handle foreign exchange to stop giving out cash for Personal and Business Travel Allowances (PTA/BTA).
Now, all payments, even with debit or credit cards, must be done electronically. Dr. Hassan Mahmud from the CBN’s Trade and Exchange Department signed the new rule. They said it’s to make foreign exchange dealings fairer and more stable, stopping any cheating.
The CBN wants more electronic payments for travel expenses. This move fits with their plan to make the Naira stronger and watch foreign exchange carefully.
Everyone, including banks and regular people, has to follow this new rule: no more cash for PTA/BTA.
Governor Yemi Cardoso from the CBN explained this decision to the House of Representatives on February 6, 2024. He blamed the Naira’s ups and downs on spending lots of money abroad, especially on education and healthcare.
Between 2010 and 2020, about $40 billion went out for these reasons, making the Naira weaker.
To fight these problems, the CBN changed some other rules. They got rid of the limits on foreign exchange rates in banks and money transfer services.
Also, they said all money coming from abroad must be changed into Naira, not kept in foreign currency. These changes are supposed to help keep the Naira strong and stable.
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