It is common practice for Nigerians going on holidays, business meetings to countries outside of Nigeria or traveling for holy pilgrimage to Saudi Arabia and Jerusalem to patronize the black market for their foreign currency needs. Most are not aware that they can approach their banks for Personal Travel Allowance (PTA) or Business Travel Allowance (BTA) as the case may be while other who are aware of this simply believe that the banks process may be too cumbersome for them or are simply too lazy to find out what the requirements are.
It is however important for prospective travellers to know that while the black market alternative for sourcing for foreign currency seems quicker or less cumbersome, it is a more expensive alternative and may come with it’s attendant risks. For instance, I have witnessed individuals being swindled of their Naira exchanged for fake Dollar notes. There are also cases of people arrested by the law enforcement agents while sourcing for dollar when about to travel for vacation.
And yes there are reputable Bureau De Change (BDC) operators who will not exchange your Naira with fake Dollar notes or in whose office you are free from law enforcement agents harassments, what about the rates?. There is always a margin of about N5 per dollar at the minimum when you compare the bank rates with the black market rates. So in addition to being sure you are getting original foreign currency and being safe from law enforcement agent harassments, you are also getting your travel allowances cheaper when you get it from the banks directly.
Apart from the above reason why you should source your PTA and BTA from the banks directly, the Central Bank of Nigeria CBN has also reiterated that there are enough forex with banks to fund the request for travel allowances of Nigerians and has charged bank customer to request from their banks directly whenever the need arises.
The CBN has also task banks to ensure customers with genuine need for BTA or PTA ate attended to after providing the required documentation.
However, there are basic requirements that the banks are expected to request form intending buyers of PTA or BTA to ascertain the genuineness of their claims of travelling on holiday, pilgrimage or for business purposes. Here are the list of documents your bank will request from you before your BTA or PTA request is treated.
Personal Travel Allowance PTA
Personal Travel Allowance are allowed for individuals travelling outside of the country for holidays, visitations or for whatever other reasons and the cash equivalent of the customers request is handed over to the customer directly or if the customer chooses, may be paid into a foreign currency denominated card.
- Applicants could be account holders or non-account holders in the bank.
- The bio data page of international passport to be viewed and copied by the bank official.
- The customer to authorize the bank to debit his account for the Naira equivalent of PTA amount.
- PTA to only apply to a journeys of not less than five (5) hours flight time.
- The applicants to present verifiable BVNs to their bankers.
- The applicant to present valid and current international passport
- The applicants shall have valid visa of the country of destination.
- The flight must originate from Nigeria and must be within the next 2 weeks.
- The flight ticket which must be valid must also be a return ticket with e-ticket number clearly showing on it.
- PTA will not be sold to person visiting blacklisted countries.
- Maximum amount for PTA is 4,000 USD per quarter.
- The applicant must have an unencumbered balance of Naira equivalent in his account
Requirements for Business Travel Allowance BTA
Business Travel Allowance for employees of a corporate organization travelling on a business trip. There are added requirements for BTA request also the amount allowed for BTA is 5,000 USD unlike 4,000 USD allowed for PTA.
- Applicants could be account holders or non-account holders in the bank.
- The bio data page of international passport to be viewed and copied by the bank official.
- The customer to authorize the bank to debit his account for the Naira equivalent of PTA amount on the letter headed paper of the company.
- Letter of invitation from your overseas partner Letter of introduction from the company stating that the employee is going on the business trip
- Certificate of incorporation of the company
- PTA to only apply to a journeys of not less than five (5) hours flight time.
- The applicants to present verifiable BVNs to their bankers.
- The applicant to present valid and current international passport
- The applicants shall have valid visa of the country of destination.
- The flight must originate from Nigeria and must be within the next 2 weeks.
- The flight ticket which must be valid must also be a return ticket with e-ticket number clearly showing on it.
- PTA will not be sold to person visiting blacklisted countries.
- Maximum amount for PTA is 5,000 USD per quarter.
- The company account must have an unencumbered balance of Naira equivalent.
The bank is expected to review all requests to ensure they meet regulatory requirements and stamp the customers international passport after every purchase.
