The policy shift marks a partial reversal of the apex bank’s 2024 directive which mandated that all PTA and BTA disbursements be conducted strictly through electronic channels in a bid to curb FX abuses and improve transparency.
Under the revised framework unveiled on Friday during the launch of the 4th Edition of the Foreign Exchange Manual in Abuja, authorised dealers will now be permitted to pay a quarter of approved travel allowances in physical cash.
Deputy Governor, Economic Policy Directorate, Dr Muhammad Abdullahi, said the adjustment was introduced to harmonise PTA and BTA operations with the revised Bureau De Change guidelines and reduce operational bottlenecks in the FX market.
“Under the revised structure, 75 per cent of PTA and BTA will be disbursed electronically, while 25 per cent may be paid in cash,” Abdullahi stated.
The revised FX manual, scheduled to take effect from June 1, 2026, forms part of broader reforms by the apex bank aimed at improving efficiency, transparency and flexibility within Nigeria’s foreign exchange market.
The development comes amid ongoing efforts by the CBN to stabilise the naira, deepen market confidence and ease constraints affecting legitimate FX users, businesses and investors.
Analysts said the decision to partially restore cash disbursement reflects growing concerns among travellers and businesses over operational challenges associated with fully electronic FX settlements.
The revised manual also introduces several major policy adjustments across trade finance, remittances and foreign exchange operations.
According to the apex bank, advance payment limits for imports have been increased from 15 per cent to 30 per cent, a move expected to provide greater flexibility for importers and manufacturers facing supply chain pressures.
The CBN also announced that processing of Form NXP — the mandatory export documentation form — will now be conducted free of charge as part of efforts to support exporters and encourage non-oil export growth.
In another significant adjustment, the apex bank removed the requirement for Form A in domiciliary remittances, granting ordinary domiciliary account holders and export proceeds account holders unrestricted access to their foreign currency funds.
The revised framework further allows tuition fee payments of up to $25,000 per semester for undergraduate and postgraduate studies abroad.
The new manual also introduces provisions covering service exports, non-resident investment accounts and transactions conducted under the Pan-African Payment and Settlement System (PAPSS).
CBN Governor, Olayemi Cardoso, said the updated FX framework was designed to strengthen Nigeria’s macroeconomic stability, improve market transparency and align the country’s FX operations with global best practices.
The 4th Edition FX Manual replaces the 2018 version and provides what the apex bank described as a more forward-looking regulatory framework capable of responding to evolving domestic and international economic realities.
Economic analysts believe the latest reforms could improve operational efficiency in the FX market and reduce transaction delays for businesses and travellers.
However, some market observers warned that allowing partial cash disbursement could increase monitoring challenges if not properly supervised.
The CBN, however, stressed that it would maintain strict oversight and compliance monitoring to ensure accountability across the foreign exchange system.
The revised framework is also expected to support investor confidence as authorities continue efforts to deepen liquidity, improve FX accessibility and stabilise Nigeria’s external sector amid ongoing economic reforms.
