…Processing time drops to four days from 120
Improved dollar liquidity has enabled Nigerian banks to resume payments for international school fees and medical bills using naira accounts, following a long suspension triggered by acute foreign exchange (FX) shortages.
BusinessDay learnt that processing time for foreign school fee payments has now been cut drastically from as long as 120 days to about four days. “It is quick,” one banker said.
Banks such as Guaranty Trust Holding Company (GTCO) and Ecobank are already notifying customers of the change. In a customer notice, GTCO said, “Pay international tuition fees directly from your naira account.” It instructed customers to use its website’s application portal and select the Form ‘A’ application option for education-related fees.
Ecobank also stated, “Pay tuition and upkeep abroad straight from your naira account. Convenient transfer with ease, just naira, just simple.”
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The bank noted that customers can also settle medical bills abroad directly from their naira accounts, adding that expatriate remittances have similarly been made easy with direct access through naira accounts.
Responding to the development, a Lagos-based economist said:“The ability to now use naira accounts for dollar-denominated transactions reflects the improved liquidity in Nigeria’s foreign exchange market. It means banks can convert naira to dollars more easily, simplifying payments and making transactions more convenient for customers.
“This is a strong signal that FX liquidity has improved significantly, enabling the use of naira for international payments, a very positive development for the country.
“Kudos to the Central Bank of Nigeria under its current leadership for the progress made. However, it’s surprising that despite the improvement in FX liquidity, we are not seeing even stronger positive outcomes. That said, the increased liquidity is evident, and it’s a step in the right direction.”
Other banks are expected to follow suit as Nigeria moves beyond the worst of its FX crisis. This broader shift follows a January 2025 move by several banks to resume the sale of Personal Travel Allowance (PTA) and Business Travel Allowance (BTA), a clear signal of improving FX availability after months of disruptions.
In an update to its customers earlier, First Bank of Nigeria confirmed the resumption of foreign currency sales for a wide range of international transactions. The bank stated that customers can now access FX for PTA, BTA, school fees, medical bills, and other Form A-approved payments. To streamline the process, First Bank emphasised that all applications must go through the CBN’s Trade Monitoring System (TRMS) portal, with all required documents uploaded.
Before this return to stability, the FX market had been under severe strain. In February 2024, Olayemi Cardoso, governor of the CBN, explained that the naira’s depreciation was due to the simultaneous decline in dollar supply and a sharp rise in demand. He noted a significant portion of this demand comes from Nigerians studying or seeking healthcare abroad.
Over the last decade, education and medical-related FX demand reached nearly $40 billion, while personal travel allowances accounted for $58.7 billion.
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For instance, between January and September 2019 alone, the CBN disbursed $9.01 billion to Nigerians for personal foreign travel.
As of January this year, guidelines permit PTA and BTA requests to be processed up to two times a year per applicant, capped at $2,000 per request, provided the application is made within 14 days of the travel date. International school fees and upkeep requests were processed within 120 days of approval, although actual processing time is now much shorter due to improved liquidity.
All requests were subject to FX availability, complete documentation, and sufficient account funding. Banks have reiterated that any application not backed by adequate funds or documents would be rejected and treated as a new request upon resubmission.
