Nigerian banks have announced a reduction in the dollar amount available to customers for personal travel allowance (PTA) and business travel allowance (BTA) every two years.
According to the new directive, the PTA available to current customers will be reduced by 50 percent from $4,000 to $2,000 while the BTA will be reduced by 60 percent from $5,000 to $2,000.
PREMIUM TIMES reports that the banks announced the development in an email sent to customers recently.
The banks have also increased the processing time for accessing foreign exchange (FX) for international school fees processed through Form A from 48 hours to 120 days, marking a significant change in FX policy.
Form A is an application form designed by Central Bank of Nigeria to pay for service transactions (invisible trade) that allow customers to make payments for services such as School fees, Technical Fees, Dividends, Airline Tickets, Debt Payments, Judgment Debts, Private Home Remittances, PTA and BTA, and more.
PREMIUM TIMES gathered that the new development comes amid the ongoing forex shortage in the country.
Nigeria, like many other countries, is experiencing a shortage of foreign exchange due to reduced revenue from oil, its main export. This puts pressure on the country’s foreign exchange reserves and the value of the local currency.
New directive
A notice from First Bank, seen by PREMIUM TIMES Tuesday, attributed the recent development to “limited FX supply.”
“At FirstBank, we value you and are committed to informing you of any changes to your Foreign Currency (Form A) request,” First Bank said in the disclosure.
“According to the limited supply of FX in the industry, please note the following: Payment of PTA / BTA is subject to a maximum of $ 2,000 and two quarters in a year, while funds will be deposited during the week of travel. Customers are recommended to apply for PTA / BTA a few weeks before the trip.
“The application for treatment is subject to a maximum of $1,500 (or its equivalent in other currencies) per semester and is limited to 2 semesters per session.”
The bank announced that the payment of school fees is subject to a maximum of $7,500 (or its equivalent in other currencies) per semester and is limited to 2 semesters per session.
“A minimum of 16 weeks is required to process the school fees and care/maintenance, after submitting the documents along with the approved Form A at the branch,” he said.
“Form A applications for school fees, student care, and PTA/BTA, must be processed in the Central Bank of Nigeria Trade Monitoring System (TRMS) and must comply with regulatory requirements.
“Requests will continue to be served on a first come, first served basis, subject to FX availability. Please ensure your account is adequately funded.
The bank also noted that payment of school fees for the current session must be made through First Bank in order to be processed.
Access Bank in its section announced that PTA / BTA requests will now be processed a maximum of twice per year per applicant at a cost of $2,000 per application where the request is made within 14 days of the date of travel.
He added that international school fees and treatment requests are processed within 120 days from the date of approval.
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