The amount of Personal Travel Allowance and school fees that one‘s customers are eligible to apply for has been decreased by Deposit Money Banks in response to the declining foreign exchange crisis.
The country’s FX shortage has recently compelled lenders to take extreme measures in order to fulfill their dollar obligations. Some DMBs reduced the amount of PTA their customers can apply for on Tuesday from $4,000 to $2,000 in an email to customers.
Additionally, lenders reduced the payment for international school fees from $15,000 to $7,500 per semester. One of the lenders, First Bank of Nigeria Limited, advised its clients to submit all of their different FX requests a few weeks beforehand.
Important update on FX purchase appeared in the lender’s bulk email. The requests could only be made twice a year, according to the bank’s statement. It suggested that customers submit their applications several weeks before their trip.
A portion of the message stated, “At FirstBank, we value you and are committed to keeping you informed on changes regarding foreign currency (Form A) requests. Please take note of the following given the short supply of FX in the market:
Payment of PTA/BTA will be made within a week of the trip and is limited to a maximum of $2,000 and two quarters per year. Customers are encouraged to apply for PTA/BTA at least a few weeks before their trip.”
“Application for maintenance is subject to a maximum of $1,500 (or its equivalent in other currencies) per semester and is limited to two semesters per session,” it was added.
Paying for school is limited to two semesters per session and is subject to a maximum of $7,500 (or its equivalent in other currencies). After submitting the necessary paperwork and the branch-approved Form A, it will take at least 16 weeks to process the school fees and maintenance/upkeep.
The email states that in order to be processed on the Trade Monitoring System of the Central Bank of Nigeria and to comply with legal requirements, Form A applications for school fees, student maintenance, and PTA/BTA must be submitted in accordance with these regulations.
Requests will still be handled on a first-come, first-served basis, subject to FX availability, it continued. Make sure your account is adequately funded.
To close the gap between the official and black market rates of the naira, economic and financial analysts have advised the CBN to devalue the local currency.