By Aduragbemi Omiyale
One of Nigeria’s leading financial institutions, First Bank, has provided an update on how its customers can apply for foreign exchange (FX) “in accordance with regulatory requirements”.
In a notice obtained by Business postthe lender said customers can get $4,000 for Personal Travel Allowance (PTA) and $5,000 for Business Travel Allowance (BTA) to be paid directly to their First Bank travel card.
However, the bank pointed out that “all PTA/BTA applications along with the approved Form A are submitted to the branch exactly 14 days before the proposed travel date”, noting that sales are limited to two quarters per year.
This development has become necessary in Nigeria due to the scarcity of forex in the country. This forced banks to ration the currency available to customers.
In the emailed message, First Bank noted that for hard currency application for overseas tuition payment, customers should submit the application at least 30 days prior.
“For tuition, a minimum of 30 days is required for processing, after submission of documents along with approved Form A to the branch, subject to a maximum of $15,000 per semester and limited to two semesters per session,” the lender said. .
He added that the interview request requires a minimum of 30 days for processing subject to a maximum of $3,000 (or its equivalent in other currencies) per semester, limited to two semesters per session.
He pointed out that the client must show proof of tuition payment for the current session if the tuition was not paid through First Bank.
The notice also stated that “a Form M must accompany Form Q requests, subject to a maximum of $20,000 and limited to 2 quarters per fiscal year.
“Application for Form A for (Tuition, Tuition, PTA/BTA) must be processed on the Central Bank of Nigeria Trade Monitoring System (TRMS) platform.”
The bank has listed the requirements for purchasing foreign currency and processing tuition fees for undergraduate and postgraduate programs as follows:
Admission letter on school letterhead
Invoice for the current semester on school letterhead.
Beneficiary’s bank details/account in name of school/university
Completed Form A
Authorization to debit client/applicant’s account for Naira equivalent and fees
Biodata page of the student’s international passport
In addition, a first degree certificate is required for postgraduate programs.
The notification of the result is admissible only if it is duly endorsed as a “certified true copy” by the institution which issued it.
The applicant must be a recognized parent or guardian of the student.
Student tuition and maintenance is strictly for degree programs and postgraduate programs.
The tuition amount must be equal to or less than the invoice amount and not greater than the invoice amount.
The maximum limit of $15,000 (or its equivalent in other currencies) per semester is no longer applicable. The amount on the invoice is the limit according to recent CBN/Bankers committee rulings.
The student upkeep/maintenance fee is a maximum of $3,000 (or its equivalent in other currencies) and can be paid directly to the account in the overseas student’s name per semester if the school does not provide for the collection of the student’s maintenance on behalf of the student. This is in line with the recent decision of the CBN/Bankers committee.
Requirements for processing PTA/BTA:
International passport biodata page
Valid visa page
Return ticket duly confirmed with e-ticket number
Authorization to debit account for Naira equivalent and fees
Account must have been open and running for at least 6 months
Fill out a prepaid card application form when the customer does not have one