CBN EASES TRAVEL ALLOWANCE RESTRICTIONS — NAIRA STILL POSTS WEEKLY LOSS DESPITE LIQUIDITY RISE

PTA and BTA cashless policy partially relaxed; naira weekly loss signals demand-side pressure persists

The Central Bank of Nigeria has partially relaxed its 2024 cashless policy restrictions on Personal Travel Allowance and Business Travel Allowance, easing the process by which Nigerians and businesses can access foreign currency for legitimate international travel and business-related expenses.

The CBN introduced tighter controls on PTA and BTA disbursements in 2024 as part of its broader programme to manage dollar demand and stabilise the naira. The partial easing signals the apex bank's assessment that the FX market has stabilised sufficiently to absorb a controlled relaxation of those restrictions without triggering disruptive demand surges.

The timing is notable. Nigerians planning international travel ahead of the June-July holiday season will benefit from easier access to official foreign exchange channels, reducing their reliance on Bureau de Change operators and the parallel market.

However, the naira simultaneously recorded a weekly loss in the official foreign exchange market despite a sharp increase in market liquidity, indicating that demand-side pressure from import activity and travel-related dollar purchases is outpacing supply even in a more liquid market. The naira is currently trading around ₦1,350–₦1,380 at the official window.

For Nigerian SMEs with dollar-denominated costs, the partial PTA/BTA easing has limited direct benefit. The more relevant development is the weekly naira weakness in the official market, which signals that the stabilisation story of Q1 2026 faces renewed demand pressure heading into Q2.