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By Chinwendu Obienyi
Following shortage of FX, Nigerian banks have announced that they are done with the review of dollar request processing time for school fees, maintenance/upkeep payment amongst others.
The banks had in May 2022, announced that they would be reviewing FX requests on foreign currency transactions due to limited foreign exchange availability from the Central Bank of Nigeria (CBN).
Consequently, some banks required a 30-day period to fulfil requests for foreign exchange needs for school fees, upkeep and rent payment. This was supposed to be consummated within 24 hours after filling a CBN approved documentation known as Form M.
However, Access Bank Plc, in a notice at the weekend, noted that it has reviewed the process of fulfilling FX requests in order to optimize its FX allocation and meet the needs of more of its valued customers.
“Between now and December 2022, we will process only one maintenance/upkeep request yearly per applicant for a maximum amount of $1,500 and only for customers whose school fees were processed through Access Bank. This is subject to maintenance/upkeep not having already been disbursed previously at any time this year.
Where the original school fees payments were settled through other banks, we will not process the corresponding maintenance/upkeep requests. Applicants will be advised to contact the bank that originally processed their school fees”, the bank said.
Furthermore, the bank said all applications that meet the above criteria will be processed and disbursed within 30 days from the date of approval, confirming that funds and documents are in line with requirements and will remain subject to FX availability. It added that PTA/BTA requests will be processed and disbursed subject to FX availability and within 14 days of approval.
“These changes are designed to make the process simpler and more accessible for our customers. We will keep you updated should these processes change”, the bank said.
The CBN had in November 2021 informed all authorised dealers and the general public of the deployment of e-Form ‘A’.
Form ‘A’, is an application form designed by the Central Bank of Nigeria to pay for service transactions (invisible trade).
The form allows customers to purchase foreign exchange at the CBN or interbank rate to make payments for eligible services.
Such eligible services include Basic Travel Allowance (BTA), Personal Travel Allowance (PTA), medical and tuition, among others.
Prior to the deployment of the electronic Form ‘A’, banks ensured that they hold adequate stock of these forms which can be obtained from the Foreign Exchange Management Office, Trade & Exchange Department, Central Bank of Nigeria, Abuja, except the Forms TE & TM which are to be collected from the Nigeria Customs Service or the Nigeria Immigration Service.
