‘$10k for school fees, $5k for medical bills’ – CBN limits dollar purchase from BDCs

The Central Bank of Nigeria (CBN) has placed limits on the foreign exchange (FX) sales by Bureau De Change (BDC) operators. 

The apex disclosed the directive on February 23, 2024, in a document titled ‘Revised Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria’.

According to the circular, BDCs may sell foreign currency in the equivalent of $4,000 and $5,000 for personal travel allowance (PTA) or business travel allowance (BTA), respectively, to an individual once every six months.

CBN said sale of foreign currencies to the intending travellers would have to be accompanied with their bank verification number (BVN) or tax identification number (TIN), duly completed e-form, valid international passport, valid visa, as well as valid international return ticket.

In addition, for BTA, the apex bank said letter of request from the corporate body stating the purpose of the visit addressed to the processing BDC, as well as certificate of the business registration or incorporation, must be submitted by customers.

Also, the CBN mandated that letter of invitation from the customer’s overseas business partner and tax clearance certificate, be presented by the customers. 

“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.

‘$5,000 FOR MEDICAL BILLS’

CBN also said BDCs may sell foreign currency up to the equivalent of $5,000 to a customer for medical bills once a year. 

Such bill, CBN said, shall be transferred from the BDC’s domiciliary account with 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. 

Other necessary documents listed by the financial regulator include valid air ticket, and letter issued by the overseas specialist doctor stating the cost of treatment. 

According to the apex bank, BDCs may sell foreign currency up to the equivalent of $10,000 to a customer for school fees once a year. 

“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.”

A beneficiary of foreign currency sale may receive up to 25 percent of the foreign currency in cash, according to the CBN, and the remaining 75 percent shall be transferred to the customer electronically (to the customer’s Nigerian domiciliary account or prepaid travel card).