Some commercial banks resumed selling their customers Personal Travel Allowance (PTA) and Business Travel Allowance (BTA), showing a shift in FX availability after a prolonged supply shortage.
The development came as financial institutions adjusted to market demands and the Central Bank of Nigeria (CBN) policy changes.
First Bank kickstarts the sale of BTA, PTA, others
Nigeria’s oldest financial Institution, First Bank, announced the resumption of FX sales for various international transactions.
The bank stressed that customers can now access FX for PTA, BTA, Payment of school fees, medical bills and other authorised transactions under Form A.
It said that Form A applications, including school fees, student upkeep, PTA, BTA, and medical bills, must be processed via the CBN’s trade monitoring systems (TRMS) portal, with all needed supporting documents uploaded to ensure a seamless application process.
Experts say that when the gap between the official and black market rates was marginal, customers received little incentive to approach banks for PTA.
CBN mandates IMTOs to pay Nigerians in naira
According to them, the shift aligns with the apex bank’s policy adjustments over the past year to stabilise the FX market.
Early last year, the CBN directed International Money Transfer Operators (IMTOs) to quote FX rates for naira payouts based on the existing market prices, showing a move toward market rates.
In February, the apex bank removed inhibitions on the spread of interbank forex transactions and limits on the sale of interbank proceeds.
CBN also mandated that PTA and BTA payments be made via electronic channels to forestall round-tripping.
BusinessDay reports that the banks’ resumption of PTA and BTA sales may show improvements in FX liquidity and the complexities of wading through Nigeria’s financial landscape.
Janet Ogochukwu, a senior banker with one of the new-generation banks, revealed that the move was a good one and would reduce the pressure in the FX market, especially the parallel segment.
“The gap between the two windows is about N100, and the new measure will narrow it. But the CBN and the banks need to do more, especially the CBN, which needs to pump FX into the parallel market to reduce volatility,” she said.
The development comes amid the continued depreciation of the naira in the official window.
