In a statement on Tuesday, First Bank explained that the latest development was due to “a limited availability of FX.”
The number of dollars that consumers may use for personal travel allowance (PTA) and business travel allowance (BTA) would be reduced by a set amount every two years, according to Nigerian banks.
The new directive states that the PTA, which is now available to consumers, will be reduced by 50%, from $4,000 to $2,000, and the BTA, from $5,000 to $2,000, by 60%.
According to sources, the banks recently sent letters of the development.
Also, the banks dramatically altered FX rules by extending the 48-hour timeframe for acquiring FX for overseas school tuition submitted via Form A to 120 days.
The Central Bank of Nigeria produced Form A, an application form for payment of services such as PTA, BTA, dividends, airline tickets, judgment debt, personal home remittance, and school tuition through hidden commerce, among other things.
Evidence has been discovered that links the most recent development to the country's persistent financial shortage.
Nigeria has been struggling with a lack of foreign money, as a result of a decline in revenue from oil, its main export. Both the local currency's value and the nation's f reserves have been impacted by this.
New guidance
The unexpected development, according to a First Bank note that was seen on Tuesday, was brought on by a “limited supply of FX.”
“At FirstBank, we value you and are committed to keeping you informed on changes relating to Foreign Currency (Form A) requests,” the bank said in a statement.
Please take note of the following in light of the industry's restricted FX supply: PTA/BTA payments will be made within a week of the travel and are limited to a maximum of $2,000 and two quarters per year. Clients are recommended to submit their PTA/BTA applications a few weeks before their travel.
“Application limited to two semesters each session and subject to a maximum of $1,500 (or same amount in other currencies) per semester.”
The payment of tuition is limited to two semesters per session and is subject to a maximum of $7,500 (or same in other currencies).
After submitting and the branch-approved Form A, it stated that processing school fees will take at least 16 weeks.
Applications for Form A for school fees, student maintenance, and PTA/BTA must be handled on the Trade Monitoring System (TRMS) of the Central Bank of Nigeria and adhere to all legal requirements.
Requests will continue to be processed on a first come, first served basis, subject to FX availability. Make sure there is adequate money in your account.
The bank added that current session tuition is to be made through First Bank in order for maintenance to be done.
Requests for PTAs and BTAs made before trip dates will only be processed twice a year, with a cap of $2,000 per application, according to Access Bank.
Also, it said that fees and maintenance for international schools are handled within 120 days of acceptance.
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