Jake Miller
Nigerians looking to travel abroad can purchase dollars as personal or business travel allowances (PTA/BTA) from their commercial banks. However, the process of obtaining PTA/BTA from banks has been inconsistent, with some banks claiming they do not have forex to sell. In late 2023, customers reported difficulties in obtaining PTA from banks, and by February 2024, the Central Bank of Nigeria (CBN) ordered banks to stop cash payments of PTA/BTA and directed them to use electronic transfers instead. Despite these challenges, some banks have resumed selling PTA/BTA to customers, indicating an improvement in foreign exchange liquidity. Nigerians can now access foreign exchange for PTA/BTA through their banks, although there are conditions in place to ensure the money is used for legitimate travel purposes only.
| Characteristics | Values |
|---|---|
| Are banks still selling BTA in Nigeria? | Yes, as of 20 January 2025, some banks have resumed selling BTA to customers. |
| Who can purchase BTA? | Nigerians who are 18 years and above and have a valid Bank Verification Number (BVN). |
| How much BTA can be purchased? | $5,000 per quarter per applicant. |
| What documents are required? | A valid Nigerian passport, a valid visa to a destination outside West Africa and Cameroun, an international return ticket with a travel date not more than 14 days from the date of purchase, an introduction letter from the applicant's company, and other supporting documents. |
| How is the BTA paid out? | Through electronic transfers to the applicant's account. Cash payments are no longer permitted. |
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What You'll Learn
- Nigerians can purchase PTA/BTA from banks at the market-determined rate
- Customers with dollar deposits in their accounts can access their funds
- The CBN allocates a certain volume of foreign exchange to commercial banks
- Nigerians favour the parallel market due to ease of access
- The CBN directed banks to stop cash payment of PTA/BTA and adopt electronic transfers
Nigerians can purchase PTA/BTA from banks at the market-determined rate
The market-determined rate is the official rate that forex is being sold at the Nigerian foreign exchange market, and it may differ from the closing, intra-day high, or intra-day low rates. The CBN allocates a certain volume of foreign exchange to commercial banks to sell to customers as PTA/BTA. However, there have been reports of inconsistencies in PTA/BTA availability, with some banks claiming they do not have forex to sell.
Nigerians looking to travel abroad can purchase PTA/BTA from their commercial banks at the market-determined rate. PTA refers to Personal Travel Allowance, while BTA refers to Business Travel Allowance. To purchase PTA/BTA, Nigerians must provide valid travel documents, including a Nigerian passport and a visa to a destination outside of West Africa and Cameroun. The travel date must be within the next two weeks, and the PTA/BTA must be returned to the bank if the trip is cancelled. There are also quarterly limits on PTA/BTA purchases, with PTA limited to $4,000 and BTA limited to $5,000 per quarter.
It is important to note that the CBN has directed banks to stop cash payment of PTA/BTA and instead use electronic transfers to promote transparency and stability in the foreign exchange market. As of 2024, Nigerians can no longer receive cash payments for PTA/BTA and must use electronic channels to access their funds. This may have contributed to the complexities of navigating Nigeria's evolving financial landscape and the inconsistent availability of PTA/BTA in banks.
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Customers with dollar deposits in their accounts can access their funds
Nigerians with dollar deposits in their bank accounts can access their funds. However, the process of purchasing foreign exchange in Nigeria has been described as complicated. The Central Bank of Nigeria (CBN) has introduced new foreign exchange market guidelines, including the adoption of electronic transfers for Personal Travel Allowance (PTA) and Business Travel Allowance (BTA).
The CBN has reminded Nigerians that they can still buy PTA and BTA through banks. However, some banks have reported that they do not have forex to sell. According to the CBN, customers looking to purchase forex via PTA/BTA can meet with their banks, and eligible transactions will be at the market-determined rate.
Despite the CBN's assurances, there have been reports of difficulties in obtaining PTA/BTA from banks. Ugodre Obi-Chukwu, founder and CEO of Nairametrics, commented on the inconsistency of PTA and BTA availability, noting that customers frequently reported challenges in obtaining PTA from banks in late 2023.
To address these challenges, the CBN has implemented policy adjustments to stabilise the foreign exchange market. In early 2024, the CBN directed International Money Transfer Operators (IMTOs) to quote exchange rates for Naira payouts based on prevailing market prices, reflecting a shift towards market-determined rates.
Nigerians looking to travel abroad can purchase dollars as personal or business travel allowances via their commercial banks. However, there are conditions set by the CBN to ensure that the allowances are used for travel purposes only. These conditions include providing valid travel documents, such as a Nigerian passport, visa, and international return ticket, with a travel date within two weeks of the PTA/BTA purchase. Additionally, PTA/BTA requests are limited to a maximum of $4,000 and $5,000 per quarter per applicant, respectively.
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The CBN allocates a certain volume of foreign exchange to commercial banks
The Central Bank of Nigeria (CBN) regulates and supervises the activities of 24 commercial banks, 916 micro-finance banks, 5 discount houses, 94 finance companies, and 6 development finance institutions in the country. CBN is responsible for formulating monetary policy and monitoring the financial system, providing guidelines in areas such as credit and foreign exchange.
In 2025, some banks resumed selling PTA and BTA to customers, signalling a shift in foreign exchange availability after previous challenges tied to supply shortages. This development reflected adjustments to evolving market conditions and CBN policy changes.
Despite CBN's efforts to stabilise the foreign exchange market, there have been inconsistencies in PTA and BTA availability in banks. Customers have reported difficulties in obtaining PTA and BTA, with some banks claiming they do not have forex to sell for these purposes. However, CBN has reminded Nigerians that they can still purchase PTA and BTA through their banks, with eligible transactions to be completed at the market-determined rate.
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Nigerians favour the parallel market due to ease of access
Nigerians travelling abroad can purchase dollars as personal or business travel allowances (PTA/BTA) from commercial banks. However, there have been reports of inconsistencies in PTA/BTA availability, with some banks claiming they do not have forex to sell. Despite this, the Central Bank of Nigeria (CBN) has reminded Nigerians that they can still purchase PTA/BTA from banks, and that all eligible transactions will be at the market-determined rate.
Nigerians favour the parallel market due to the ease of access. The process of obtaining PTA/BTA from banks can be complicated, with various requirements and conditions that must be met. For example, applicants must provide valid travel documents, including a Nigerian passport, visa, and confirmed return ticket for a trip within two weeks of travel. PTA/BTA requests are also limited to a maximum of $4,000 and $5,000 per quarter per applicant, respectively. In contrast, the parallel market offers easier access to forex, with no documentation requirements. This has led to a preference for purchasing forex from parallel market operators, even with a N100 margin between the official and parallel market rates.
The CBN has implemented policy changes to stabilise the foreign exchange market and improve transparency. In 2024, the CBN directed International Money Transfer Operators (IMTOs) to quote exchange rates based on prevailing market prices, reflecting a shift towards market-determined rates. Additionally, the CBN ordered banks to stop cash payment of PTA/BTA and adopt electronic transfers to ensure stability and promote transparency. These changes may have contributed to the resumption of PTA/BTA sales by some banks and improved foreign exchange liquidity.
Despite the CBN's efforts, the dynamics of the foreign exchange market continue to impact Nigerians' preferences. When the gap between official and parallel market rates is small, there is less incentive for individuals to approach banks for PTA/BTA. In some cases, the official market rate may even exceed the parallel market rate, further encouraging individuals to favour the latter.
While the CBN works to stabilise the market and ensure transparency, Nigerians continue to weigh their options when it comes to accessing foreign exchange. The preference for the parallel market due to ease of access highlights the complexities of navigating Nigeria's evolving financial landscape and the importance of maintaining a stable and efficient FX market that meets the needs of legitimate users.
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The CBN directed banks to stop cash payment of PTA/BTA and adopt electronic transfers
On February 15, 2024, the Central Bank of Nigeria (CBN) issued a directive to banks to stop making cash payments for personal travel allowance (PTA) and business travel allowance (BTA). Instead, banks were instructed to adopt electronic transfers for these transactions. The CBN's notice, signed by Hassan Mahmud, the director of the trade and exchange department, emphasized that the new policy was designed to ensure stability and promote transparency in the foreign exchange market and prevent foreign exchange malpractices.
The CBN's directive stipulated that all authorized dealer banks must make PTA and BTA payouts exclusively through electronic channels, specifically including debit or credit cards. This shift towards electronic transfers was intended to bring greater transparency and stability to the foreign exchange market in Nigeria. The CBN had been introducing new policies since the beginning of 2024 to address the volatility in the foreign exchange market and encourage FX inflows.
Despite this directive, there have been reports of inconsistencies in PTA and BTA availability in banks. Ugodre Obi-Chukwu, founder and CEO of Nairametrics, noted that while banks officially claim to offer PTA and BTA, accessing these services can be challenging. He observed that in late 2023, customers often encountered difficulties in obtaining PTA from banks, and some were told it was unavailable. However, customers with dollar deposits in their accounts were able to access their funds.
In January 2025, some banks resumed the sales of PTA and BTA, signaling an improvement in foreign exchange liquidity. This development aligned with policy adjustments made by the CBN over the past year to stabilize the foreign exchange market. First Bank of Nigeria, for example, announced the resumption of foreign currency sales for various international transactions, including PTA and BTA. However, customers were advised to process their applications through the CBN's Trade Monitoring System (TRMS) portal, uploading all required supporting documents.
While the CBN has directed banks to stop cash payments for PTA and BTA, Nigerians can still purchase PTA and BTA through their banks. This clarification was made by the CBN, reminding Nigerians that travel allowance-related purchases are still possible despite the introduction of new foreign exchange market guidelines. The CBN emphasized that bank customers seeking to purchase forex via PTA/BTA can approach their banks, and all eligible transactions will be conducted at the market-determined rate.
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Frequently asked questions
Yes, banks in Nigeria are still selling BTA (Business Travel Allowance). However, as of February 2024, the Central Bank of Nigeria (CBN) has ordered banks to stop cash payment of BTA and instead use electronic transfers.
The requirements to purchase BTA from a Nigerian bank include:
- A valid Nigerian passport
- A valid visa to a country outside West Africa and Cameroun
- An international return ticket with a travel date within two weeks from the purchase date
- An introduction letter from the applicant's company stating the purpose of travel, signed and stamped
- A valid and current international passport of staff or director
- An invitation letter from a business partner abroad
- CAC registration documentation
- A valid visa page
The maximum amount of BTA that can be purchased per quarter is $5,000 per applicant.
