CBN Sets Limits on Dollar Purchases from BDCs: $10,000 for School Fees, $5,000 for Medical Expenses

The Central Bank of Nigeria (CBN) has set new rules for Bureau De Change (BDC) operators regarding the sale of foreign currency.

Starting from February 23, 2024, BDCs are limited in the amount of foreign currency they can sell. For personal travel or business travel, individuals can buy up to $4,000 or $5,000, respectively, every six months.

To make a purchase, individuals need to provide certain documents like their bank verification number (BVN) or tax identification number (TIN), a completed e-form, a valid international passport, a valid visa, and a valid international return ticket.

For business travel, customers also need a letter from the company explaining the purpose of the trip, as well as proof of the company’s registration or incorporation.

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).