How Nigerians Can Access Dollars Under The New CBN Forex Regime

On June 14, the Central Bank of Nigeria collapsed all segments in the foreign exchange market into the Investors’ and Exporters’ Window.

By implication, all eligible forex transactions in the market will only be executed in the I&E window while all other windows cease to exist.

The CBN explained that “the I & E market functions by a willing buyer, willing seller system, where an entity with demand for FX seeks out another entity with FX to sell at an agreed price through an authorised dealer.”

Based on the concept of “willing buyer, willing seller” rates are mutually agreed upon by the transacting parties.

At the I&E Window, the naira was priced at N663.04 on Friday.

However, the reform permits government-related transactions which allow the CBN to sell to Ministries, Departments and Agencies on a weighted average.

Currently, the CBN rate for government-related transactions is N589.45 for a dollar.

But with the new FX regime, a lot of Nigerians are confused about how to access dollars for Business Travel Allowance CBTA), Personal Travel Allowance (PTA), school fees, and medical treatments abroad.

The CBN still affirms that Nigerians can access FX for these purposes.

The apex bank said in a document published on its website, “There are no changes in the application process. All applications shall be through the banks and all documentation requirements remain the same.”

“The status quo remains on the 43 noneligible items. The items are not permitted
to be funded from the I & E window.”

In the past FX regime, the BTA and PTA are one of the best ways to get foreign currencies at the CBN rate.

But with the new regime, FX will be accessed at the prevailing market rate and will not be sold at a CBN-dictated rate.

The CBN said, “PTA, BTA, and other invisible transactions continue to be accessed through the banks at the prevailing market rate.”

How To Apply and Documents Needed For Submission

Approach a Deposit Money Bank and apply for the BTA, PTA, school fees, or medicals.

• Present the following documentation For PTA: Valid Nigerian Passport; Valid Visa of the country of destination and a valid BVN.
• Documentation For BTA: Valid Nigerian Passport; Valid Visa of the country of destination; Valid BVN; Certificate of Incorporation; Letter of invitation from the company abroad; Letter of nomination from the Nigerian company.
• Documentation For School Fees: Completed Form A application; Valid means of ID of the applicant; International passport data page of the student; Admission letter from school of choice (this should include fees to be paid); First-degree certificate (for post-graduates); Bank details of the school; Account funded with Naira equivalent of requested amount; Written instruction giving authority to debit and Duly filled letter of indemnity if name differs and guardian is making payment.
• Documents needed for Medical Bill Payment: A valid Nigerian passport; A valid visa of the country of destination; A return air ticket; Valid BVN; Completed Form A application; Valid means of ID of the applicant; International passport data page must be submitted for processing; Applicant must possess valid visa and flight ticket; Written instruction giving authority to debit. Signature must be verified and Specialist letter of recommendation for medical treatment abroad.