CBN orders bank to honour foreign exchange request for school fees, BTA and others

By Omoh Gabriel

The Central Bank of Nigeria CBN, yesterday frowned at some banks refusal to process eligible foreign exchange application for parents wanting to pay school fees abroad. The CBN has therefore directed all banks to meet the foreign exchange needs for payment of schools, student maintenance and other eligible foreign exchange demand at the interbank exchange rate.

The apex Bank in a statement signed by the Bank’s Director, Corporate Communication Ibrahim Mu’azu said ” The Central Bank of Nigeria (CBN) wishes to inform the general public that all legitimate requests for foreign currency for eligible transactions, normally referred to as “invisibles”, such as remittances for school fees, student maintenance allowances, BTA, PTA, medical and other eligible transactions, shall be fully met at the official/interbank exchange rate. Already all the legitimate demand for such transactions through recognized channels have so far been fully met by CBN.

“The CBN hereby directs all authorized dealers in foreign exchange in Nigeria to henceforth treat as top priority all legitimate demand for foreign exchange for eligible transactions.

“The CBN once again advises individuals that wish to source foreign currency for such eligible transactions to approach their banks with their legitimate demand as the CBN has made adequate provisions of foreign currency for all such legitimate and eligible purposes.

“Furthermore, holders of naira denominated debit and credit cardsshall continue to have access to the use of their cards at ATM machines in any part of the world but subject to the annual limit of $US 50,000. ATM withdraws shall continue to be a maximum of $300 per day.

“The general public is hereby advised to channel any complaints arising from any authorized dealer’s refusal to process such legitimate demand to the Director, Consumer Protection Department, Central Bank of Nigeria, for necessary action.”

Some banks have in the last two weeks been refusing to process application for payment of school fees. In some of the cases they even refused individuals with domiciliary account to transfer money from such account to schools abroad. In some others they refused payment transaction for student accommodation insisting that they can not pay to a third party.