The Central Bank of Nigeria (CBN) has unveiled new foreign exchange (FX) sales limits for Bureau De Change (BDC) operators, setting a $4,000 cap for Personal Travel Allowance (PTA) and $5,000 for Business Travel Allowance (BTA).
This move, disclosed in the ‘Revised Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria,’ aims to streamline FX transactions and curb abuse in the market.
According to the directive, BDCs are permitted to sell foreign currency to individuals for PTA or BTA once every six months.
But for school fees, BDCs may sell foreign currency up to the equivalent of $10,000 to a customer once a year.
“Such fee, which shall be transferred from the BDC’s domiciliary account with a Nigerian bank, shall be paid directly to the school and supported by the following documents: duly completed e-Form A, evidence of admission/course programme, valid air ticket, and letter issued by the overseas specialist doctor stating the cost of treatment, and school bill/invoice,” CBN said.
“For post-graduate studies, photocopy of first degree certificate or its equivalent/certified true copy of statement of result by the awarding institution.
“The CBN may review the amounts and frequencies for sale of foreign exchange from time to time.”
To access the FX, customers must provide their Bank Verification Number (BVN) or Tax Identification Number (TIN), along with other required documentation such as a valid international passport, visa, and return ticket.
Also, the CBN stipulates specific requirements for BTA transactions, including a letter of request from the corporate body, business registration or incorporation certificate, and letters of invitation from overseas business partners.
These regulations aim to enhance transparency and accountability in FX transactions while ensuring that BDC operators adhere to strict compliance standards.
The CBN may periodically review these limits and guidelines to maintain stability and integrity in the foreign exchange market.
