New Forex Rule For BDCs: CBN Introduces Cash Limit for BTA, PTA for Travellers
- The Central Bank of Nigeria (CBN) has rolled out new rules for Nigerians travelling abroad for business and other issues
- The new directive, issued on Wednesday, December 10, 2025, limits FX for Personal Travel Allowance and Personal Travel Allowance
- The guideline is contained in Frequently Asked Questions (FAQs) on the ongoing reforms in the Bureau De Change sector
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Central Bank of Nigeria (CBN( has rolled out a fresh rule that is already sending ripples through the travel community.
Under the new directive, Nigerians seeking foreign exchange for Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) will now receive only a fraction of their approved funds in cash.
Source: Getty Images
The rest will be pushed to prepaid cards, marking one of the most significant changes to travel forex in recent years.
Only 25% can be taken as cash
The guideline, published in a new FAQ document on the ongoing reforms in the Bureau De Change sector, outlines the details of this shift and what it means for travellers preparing for trips abroad.
In the revised framework, PTA recipients can access up to 4000 dollars per quarter, while BTA applicants may obtain as much as 5000 dollars. What has changed is the mode of collection.
According to a report by Vanguard, the CBN now permits only 25% of the approved amount to be issued in physical cash. A minimum of 75% must be transferred to a prepaid card.
This move narrows the window for cash-heavy travel and signals a stronger effort to track and regulate forex distribution.
Travellers will still need to provide full documentation before collecting their allowance, including verified travel details and identification.
The CBN maintains that this shift supports transparency in the system while reducing opportunities for round-tripping and other abuses that have plagued the forex market.
Medical travel: Limits and new requirements
The circular also touches on overseas medical trips, a category that has grown in recent years.
Under the new rules, anyone travelling for medical care can still obtain up to $5000 from a BDC, as long as all required documents are presented.
In cases where a patient’s expenses exceed that threshold, the individual is expected to approach a commercial or non-interest bank for the balance.
The intent here is to ensure that foreign exchange for health emergencies is still available, but within a structure that keeps BDC activity tightly monitored.
Students abroad face an annual cap
The new policy also affects Nigerian students studying overseas. Parents, guardians or sponsors can source forex from BDCs for school fees, but the allowance now carries a maximum of 10,000 dollars per year.
As with other categories, this access remains dependent on proper documentation from the institution abroad.
This cap means families with higher annual fees may have to rely more heavily on banks for additional funds.
It is another sign that the CBN is steering more transactions into the regulated banking system while narrowing the role of street-level currency operators.
The cash limit marks another bold step in Nigeria’s evolving forex reform journey.
CBN moves to curb excess FX from BDCs
While the intention is to curb misuse, the change is expected to reshape the experience of travellers who have long relied on flexible cash access from BDCs.
As the country pushes toward a more structured foreign exchange market, the coming months will reveal how travellers, students and businesses adjust to this tighter model.
Source: Twitter
The apex bank recently overhauled the BDC sector, releasing the names of 82 eligible participants in the sector.
The bank also delisted about 1,400 BDC operators, which failed to comply with its recently concluded recapitalisation exercises.
CBN announces 4 new cash withdrawal, deposit rules
Legit.ng earlier reported that CBN has revised its cash withdrawal and deposit rules, effective January 1, 2026.
In a circular signed by Rita Sike, Director of the Financial Policy & Regulation Department, the apex bank said the new rules are aimed at addressing the high cost of cash handling, addressing security risks, and curbing money laundering while encouraging wider use of electronic payment channels.
One of the major changes is the removal of cumulative deposit limits, meaning customers can now deposit any amount without paying excess deposit fees.
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Source: Legit.ng
