•DMBs kick-start operational changes to Form A, Q applications
•Say applicants must fund accounts adequately
By Chinwendu Obienyi
Nigerian students hoping to study abroad will need to brace for increasing uncertainties in their plans following the Central Bank of Nigeria (CBN)’s recent abolishment of the nation’s multiple FX windows and collapsing of all the official FX segments into the Investors & Exporters Window (IEW).
The development means buyers and sellers of foreign currency in the official FX market are now allowed to quote rates they find comfortable in the FX market, as against previous practice where rates were dictated by the Central Bank of Nigeria (CBN).
Daily Sun investigations revealed that the IEW is quoting a range between N750-N755/$1 and with the pound sterling rates currently at N838.8/£1, students have pleaded with UK universities to intervene on their behalf as they are on the receiving end of the unfavourable policy especially with those who have started their applications for September 2023 intake.
Further investigations also revealed that most commercial banks have begun making important changes to Form A and Form Q applications. Form A is an application form designed by Central Bank of Nigeria to pay for service transactions (invisible trade) that allows customers to make payment for services such as School fees, Technical fees, Dividends, Airline Tickets, Loans repayment, Judgment debt, Personal Home Remittance, PTA, BTA etc.
On the other hand, Form Q is designed for small scale importers in the Small scale business enterprise for importation of physical goods
For example, an email sent by Access Bank read, “Dear Customer, the changes to the CBN’s policy on FX have the following impact on the processing of all form A (PTA/BTA, school fees, medical fees) and form Q (SME) applications; All applications will continued to be process through the bank, the Naira to foreign currency exchange rate is no longer fixed by the CBN and the rate is determined by the prevailing FX market at the point of FX purchase guided by the IEW”.
The email also stated that this would affect all new and pending Form A and Form Q applications.
“We kindly request that you adequately fund your account to accommodate the Naira equivalent of your foreign currency needs. Whilst thanking you for your patronage, please be assured of our utmost commitment to always provide you with quality banking service”, the bank said.
Reacting to the development, a student who gave his name as Jkay, said, “The gigantic and sharp rise in oanda rate has eaten up any possible backup plans to upturn or twist the maintenance requirements in one’s favour. Paying up the balance of school fees is not even sufficient enough to pass the maintenance requirements, neither will any possible discount.
UK universities will have to intervene on behalf of their prospective students, especially those of us in Nigeria who are at the receiving end of the unfavourable government policy. The school will have to appeal to UKVI to give some concessions as regards the exchange rate as many of us will find it extremely difficult to meet up with the difference caused by the speed of the Naira to pounds slippage. Many of us have invested time, efforts and resources to get to where we are right now. I pray that something favourable that will put smiles on our faces happen”.
Another student who simply gave her name as Mary, said, “I can understand emotions are running wild, people are frustrated and distressed by the erratic Oanda rates. I am actually. The rate is so fast that even Usain Bolt cannot catch it, but I don’t think blackmail is the way out.
Besides, no University is happy with this current situation and I believe all of them are trying to find a solution to this problem. We can only appeal to all stakeholders to intervene on our behalf and find an acceptable Oanda maintenance rate for September and January intakes”.