NEWS
Nigerian Banks cut school fees, travel allowance amid dollar shortage
Deposit Money Banks (DMBs) have cut the amount of Personal Travel Allowance (PTA) and school fees customers can apply for due to the worsening foreign exchange (FX) crisis in Nigeria.
The shortage of FX in the country has forced the lenders to take drastic measures to meet their dollar obligations.
Some DMBs sent emails to their customers on Tuesday, reducing the amount of PTA their customers can apply for from $4,000 to $2,000, while overseas school fees payment was cut from $15,000 to $7,500 per semester. First Bank of Nigeria Limited advised its customers to make their various FX requests several weeks ahead of time, with applications limited to two semesters per session.
In an email to its customers, First Bank stated that “Payment of PTA/BTA is subject to a maximum of $2,000 and two quarters in a year, while funds will be disbursed within the week of the trip. Customers are encouraged to apply for PTA/BTA some weeks ahead of their trip.”
The email further added that “Application for upkeep is subject to a maximum of $1,500 (or its equivalent in other currencies) per semester and limited to two semesters per session. Payment of school fees is subject to a maximum of $7,500 (or its equivalent in other currencies) per semester and limited to two semesters per session.”
Despite the CBN’s efforts to bridge the gap between the official and parallel market rate of the naira, the economic and financial analysts have advised the CBN to devalue the local currency.
The FX crisis has affected a lot of Nigerians who need to pay for overseas education and travel, and the reduction in PTA and school fees by DMBs is a big blow to them. However, customers are encouraged to apply for PTA/BTA and school fees some weeks ahead of their trip to ensure that their requests are granted.
As the FX crisis continues, it is important for the CBN to take necessary measures to ensure that the local currency is stable and the FX market is accessible to all Nigerians.
