The Central Bank of Nigeria has moved decisively to curb the distribution of physical cash for foreign travel, announcing that individuals accessing Personal or Business Travel Allowance through Bureau De Change operators may now receive only a quarter of the amount in hard currency. Effective immediately, the remaining 75% must be loaded onto a prepaid card.
This new directive was detailed in a Frequently Asked Questions on Current Reforms of the BDC Sector document published on Wednesday. It outlines the precise mechanisms for Nigerians to procure foreign exchange for international travel, medical treatment, and educational fees via the reformed BDC channel.
For standard travel purposes, the quarterly limits remain unchanged: individuals can access up to $4,000 for Personal Travel Allowance and $5,000 for Business Travel Allowance. However, the method of disbursement has been fundamentally altered. The CBN explicitly stated that a beneficiary may receive up to 25 percent of the foreign currency in cash, while at least 75 percent shall be transferred to the customer’s prepaid card. All existing documentary requirements—including a valid passport, visa, and confirmed ticket—remain mandatory for access.
Provisions for medical travel and education abroad have been separately defined. Nigerians traveling for medical reasons can access up to $5,000 from any BDC, provided they present a doctor’s referral, hospital invoices, and other stipulated documents. Any amount exceeding this threshold must be sourced through a commercial bank. Similarly, students or their sponsors can purchase up to $10,000 annually for tuition and fees from BDCs upon presentation of an admission letter and a fee invoice, with sums above that limit processed by banks.
This 25% cash cap is a cornerstone of the broader BDC reforms launched in 2025, designed to sanitize the parallel market, eliminate round-tripping, and enforce a digital payments trail. Since July 2025, all BDCs must operate under new Tier 1 or Tier 2 licenses, requiring minimum capital bases of ₦500 million and ₦2 billion, respectively. This regulatory push has increased the number of licensed operators from fewer than 300 to over 5,000.
The prepaid card, issued by banks or approved fintechs in partnership with networks like Verve, Mastercard, or Visa, is now the primary instrument for travel forex. These cards are functional globally for ATM withdrawals, online transactions, and point-of-sale payments, offering users enhanced security and spending tracking. The Naira equivalent for the foreign currency is settled locally via bank transfer or POS, keeping the transaction within the formal financial system.
The practical impact for travelers is significant. An individual accessing a $4,000 PTA will now receive only $1,000 in physical cash, with $3,000 placed on a card. Similarly, a $5,000 BTA translates to $1,250 in hand and $3,750 in digital form.
The Central Bank has issued a strict warning that failure to present the required documents will result in a denial of forex, and any BDC found contravening the new rules risks license revocation. Financial institutions and fintech companies are reportedly expanding their prepaid card offerings, with some waiving issuance fees to facilitate a smooth transition for the public.
This policy is a strategic component of Nigeria’s larger shift toward a cash-light economy. Amidst persistent foreign exchange pressures—with the Naira closing at ₦1,530 to the dollar on December 10, 2025—the apex bank aims to ensure every officially allocated dollar is traceable, spent appropriately, and retained within the formal financial ecosystem.