The Central Bank of Nigeria (CBN) has set limits on the amount of foreign exchange (FX) that Bureau De Change (BDC) operators can sell.
The directive was announced by the CBN on February 23, 2024, in a document called ‘Revised Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria’.
According to the new rules, BDCs can only sell foreign currency up to $4,000 for personal travel allowance (PTA) and $5,000 for business travel allowance (BTA) to an individual once every six months.
The CBN stated that when selling foreign currency to travelers, BDCs must ask for their bank verification number (BVN) or tax identification number (TIN), a completed e-form, a valid international passport, a valid visa, and a valid international return ticket.
Furthermore, the apex bank requires customers applying for BTA to submit a letter of request from the corporate body stating the purpose of the visit to the processing BDC, along with a certificate of business registration or incorporation.
Additionally, customers must provide a letter of invitation from their overseas business partner and a tax clearance certificate, as mandated by the CBN.
“The amount of foreign currency sold and date of sale shall be endorsed on the passport. A photocopy of the documents, forex endorsement page, and sales receipt shall be filed in a sequential order by the BDC,” CBN said.
CBN also mentioned that BDCs are allowed to sell foreign currency worth up to $5,000 to a customer for medical expenses once a year.
The payment for such medical bills, as per CBN, should be made from the BDC’s domiciliary account in a Nigerian bank.
“It shall be paid directly to the hospital and supported by valid visa, duly completed e-Form A, letter of reference from a specialist doctor, or a specialist hospital in Nigeria, and valid international passport,” the apex bank said.
Additional documents required by the financial regulator include a valid air ticket and a letter from the foreign specialist doctor detailing the treatment cost.
Furthermore, BDCs are permitted to sell foreign currency up to $10,000 to a customer for school fees once a year, according to the central bank.
“Such fee, which shall be transferred from the BDC’s domiciliary account with a Nigerian bank, shall be paid directly to the school and supported by the following documents: duly completed e-Form A, evidence of admission/course programme, valid air ticket, and letter issued by the overseas specialist doctor stating the cost of treatment, and school bill/invoice,” CBN said.
“For post-graduate studies, photocopy of first degree certificate or its equivalent/certified true copy of statement of result by the awarding institution.
“The CBN may review the amounts and frequencies for sale of foreign exchange from time to time.”
When selling foreign currency, a beneficiary can receive up to 25% of the foreign currency in cash, as stated by the CBN. The remaining 75% will be transferred electronically to the customer, either to their Nigerian domiciliary account or prepaid travel card.
