Regulatory Alerts2017-02-21 | FMD-DIR-CIR-GEN-08-003Guideline on The Operationalization of The New Policy on PTA and School Fees
The Central Bank of Nigeria (CBN) has introduced new measures to increase foreign exchange availability in the Nigerian market and ease difficulties for citizens obtaining funds for certain transactions. This includes weekly sales of foreign exchange on different classifications of banks, specifically for Personal Travel Allowance (PTA) and School fees. PTA is limited to trips of at least 5 hours and can be used within a quarter for $4,000 or less per purchase. For school fees, an application limit is set at $15,000 or its equivalent per term/semester. Banks are required to submit daily returns on sales of foreign exchange for PTA and School fees to CBN by 4 p.m. daily in both digital and hard copy formats, with non-compliance leading to potential sanctions.
Website: www.cenbank.org Email: financialmarkets@cbn.gov.ng Tel: 09 462 36700, 0946236703 CENTRAL BANK OF NIGERIA Corporate Head Office, Central Business District, P.M.B. 0187.
Garki, Abuja - F.C.T.
Ref: FMD/DIR/CIR/GEN/08/003 February 20, 2017 TO ALL AUTHORISED DEALERS GUIDELINES FOR THE OPERATIONALISATION OF THE NEW POLICY ON PTA AND SCHOOL FEES In continuation of the efforts to increase Foreign Exchange availability in the Nigerian Foreign Exchange Market, and the need to ease the difficulties encountered by Nigerians in obtaining funds for some invisible transactions, the Central Bank of Nigeria (CBN) has decided to introduce the following measures:
1. Foreign Exchange Sales
The Central Bank of Nigeria (CBN) shall commence the sales of foreign exchange on weekly basis to banks classified into merchant banks, small banks, medium banks and big banks. The sales shall be for Personal Travel Allowance (PTA) and School fees. Sale shall be every Tuesday.
2. Sales For Personal Travel Allowance (Pta)
The following conditions shall henceforth apply for sales for PTA: a) b) c) d) e) f) a) h)
3. Sales For School Fees
a) Remittances shall be made directly to the school's account.
Applicants shall be eighteen (18) years of age and above.
Applicants/beneficiaries shall be holders of Nigerian Passports. Applicants shall be account holders in the chosen bank.
PTA shall only apply to journeys of not less than five (5) hours flight time.
The flight must originate from Nigeria Sale of PTA shall be for travel to be undertaken not more than 14 days from the day of the purchase of PTA. Applicants shall present verifiable BVNs to their bankers.
Applicants shall be entitled to $4,000.00 per quarter.
b) c) d) e) Applications shall be for not more than $15,000.00 or its equivalent per term/semester.
Applicants shall be recognized parents/guardians.
Applicants shall provide their Bank Verification Numbers (BVN) to their bankers.
Applicants shall present the following:- Duly completed Form "A".
i) ii) Admission letter from the school.
iii) Invoice from the school.
4. Report On Transactions
All banks are expected to submit a daily return of their sale of foreign exchange for PTA and school fees to the Central Bank of Nigeria. The report must reach the Director, Financial Markets Department, on or before 4 p.m. daily in soft and hard copies. The report must indicate Applicant name, Amount purchased, Applicable rate (USD/NGN), Purpose of purchase, Beneficiary name and Passport number.
Any bank that fails to comply with this circular shall be sanctioned.
Please ensure compliance.
This circular supersedes the previous circular, Ref: FMD/DIR/CIR/GEN/08/002.
Dr Alvan E. Ikoku Director, Financial Markets Department