These individuals are now directed to obtain foreign exchange from the Investors’ and Exporters’ (I&E) window.

In a press statement following the CBN’s announcement on June 14, 2023, regarding new guidelines in the foreign exchange market, an extraordinary Bankers’ Committee meeting was convened on Friday, June 16, 2023, to discuss the implementation and implications of these guidelines for the banking public.

Dr. Isa Abdulmumin, the Director of Corporate Communications, stated that the CBN, taking into account the discussions at the meeting, has provided further guidance to Deposit Money Banks (DMBs).

These guidelines issued by the CBN are aimed at improving transparency, liquidity, and price discovery in the foreign exchange (FX) market.

The goal is to enhance the supply of foreign exchange, discourage speculation, build customer confidence, and ensure overall stability in the FX market.

Under these guidelines, individuals seeking foreign exchange for medical expenses, school fees, and basic travel allowance (BTA) are directed to obtain them from the Investors’ and Exporters’ (I&E) window.

Deposit Money Banks (DMBs) are instructed to promptly process eligible invisible transactions on behalf of their customers using the applicable exchange rate at the I&E window.

Ordinary domiciliary account holders are granted unrestricted access to funds in their accounts. They are permitted to use cash deposits up to USD$10,000 per day or its equivalent through telegraphic transfers. DMBs are required to provide returns to the CBN, including the purpose of such transactions.

The guidelines also state that cash deposits into domiciliary accounts will not be restricted, as long as DMBs comply with the necessary Know Your Customer (KYC) procedures, due diligence, and adhere to anti-money laundering and counter-terrorism financing (AML/CFT) laws and regulations.

Furthermore, the CBN emphasizes its commitment to settling committed FX forward transactions in an orderly manner to boost market confidence.

The bank also plans to normalize its Cash Reserve Ratio (CRR) maintenance processes and ensure equitable implementation across the banking industry.

The CBN intends to maintain engagement with stakeholders and provide further guidance as it continues to implement ongoing reforms in the foreign exchange market

Banks also reduced personal travel allowance (PTA) and business travel allowance (BTA) dollars by approximately 50 and 60 percent, respectively, to $2,000 from $4,000 and $5,000.

Form A is a Central Bank of Nigeria (CBN) application form used to pay for service transactions (invisible trade) such as foreign tuition, training courses, and medical bills.

Nigerian students studying abroad can use the form to obtain foreign exchange at the official rate rather than the parallel market, which is always significantly higher.

Recall the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, saying the number of Nigerian students seeking foreign education for the depletion of the foreign reserves.

Nigeria’s external reserves fell by $3.43bn in 2022, according to figures obtained from the Central Bank of Nigeria.

The CBN disclosed in its movement on external reserves figures that the reserves stood at $40.52bn as of the end of December 31, 2021, and ended December 29, 2022, at $37.09bn.

First Bank

First Bank informed its customers that foreign exchange requests would continue to be handled on a first-come, first-served basis, subject to FX availability.

“Payment of PTA/BTA is subject to a maximum of $2,000 and two quarters in a year, while funds will be disbursed within the week of the trip. Customers are encouraged to apply for PTA/BTA some weeks ahead of their trip,” the notice reads in part.

“Application for upkeep is subject to a maximum of $1,500 (or its equivalent in other currencies) per semester and limited to 2 semesters per session. “Payment of school fees is subject to a maximum of $7,500 (or its equivalent in other currencies) per semester and limited to 2 semesters per session.

“A minimum of 16 weeks is required for processing school fees and upkeep/maintenance, after the submission of documents along with the approved Form A at the branch.”

“Application for Form A for school fees, student upkeep, and PTA/BTA, must be processed on the Central Bank of Nigeria’s Trade Monitoring System (TRMS) and must be in line with regulatory requirements.”

Access Bank

Access Bank also notified its customers of the changes in an email.

“PTA and BTA requests have now been processed a maximum of twice annually per applicant at a cost of $2,000 per application, where the request is within 14 days of the travel date. International school fees and upkeep requests are processed within 120 days of approval.

“All applications are processed and disbursed subject to FX availability of proper documentation, provided the account to be debited is sufficiently funded to cover the Form A charge and other processing fees.”

“Kindly ensure your account is sufficiently funded to accommodate the value of the transaction and charges at the time of processing, “as any request not backed by an adequately funded account or the required documentation will be rejected and considered a new request upon re-submission.

“Updates on pending approved or rejected Form A requests are duly posted and accessible on the Trade Monitoring System portal.”

Through an email, the bank institution informed account holders of its foreign exchange policy and explained that only customers who utilized its company to process overseas school tuition would have access to dollars.

Access Bank stated that applications are subject to FX availability and that the FX will be supplied within 60 days after approval, in addition to the request for cash and papers.

“Wefulfillment values your relationship with us and would like to keep you informed on changes regarding our fulfillment of FX requests. International school fees are processed for customers who initiate their request via Access Bank.

“Applications will be processed and disbursed within 60 days from the date of approval, subject to FX availability, provided funds and documents are in line with requirements.”

The statement also disclosed that “maintenance and upkeep requests are processed once a year per applicant for a maximum amount of $1,500 and only for customers whose school fees were processed via Access Bank.

“This is subject to maintenance and upkeep not having already been disbursed previously at any time this year, and requests will be fulfilled within 60 days from the approval date, subject to FX availability.”

Access Bank explained, “For the rest of the year, PTA and BTA requests will be processed just once for applicants who log their request 14 days before the travel date.

“As of January 2023, however, applicants will be entitled to only two fulfilled PTA or BTA requests per year. Disbursement will always be subject to FX availability.”