According to various online sources, as at the 26th of October 2022, $1 (One Dollar) equals N760 (Seven Hundred and Sixty Naira). However, the official CBN rate stands at $1 (One Dollar) equates to N435 (Four Hundred and Thirty Five Naira). In February of this year, the apex bank of the country declared a discontinuance of the Forex sale to citizens to facilitate international transactions by December 2022.

See also:

Hidden Secrets of Money – What is Real Money?
Hidden Secrets of Money – Why is There Inflation and Imbalance of Wealth?
Hidden Secrets of Money – The Hidden Truth about Money
Hidden Secrets of Money – How to Make Yours
Hidden Secrets of Money – World Rich List by Country Natural Resource Reserves

Processing Time for Forex Purchase

On the CBN Forex application portal (link below), the time for approval of the application takes about 2 weeks. From the point of final endorsement by the processing bank to when the withdrawal of Naira from the account to the final transfer of foreign currency to the foreign bank takes another 2 to 4 weeks. This puts the processing time at about 4 to 6 weeks.

In the case of a deadline, as imposed by CBN, means that the best case for processing of forex borders around 3 to 5 weeks. In essence, Nigerians and all concerned ought to have initiated their Forex purchase by mid-November 2022. By the 15th of December 2022, all applications should have gotten to the stage of disbursement at CBN to the international recipient.

Impact of Forex Scarcity

Nigerians will begin to pay the difference between blackmarket rate and the CBN rate (plus processing fees). Putting it in context, the amount spent to obtain dollars will be 65% higher. This represents a loss of N310 (Three Hundred and Ten Naira) on every dollar being requested.

Therefore, it is imperative for Nigerians to take advantage of their quota of Forex from the CBN. Every Nigerian is entitled to $4,000 every quarter based on fulfillment of certain criteria. The time is short before they begin losing 65% of their resources.

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Applying for Foreign Exchange Currency – Customer’s Updated Information:

Before you apply, it is important to know that: 

• Applications for Form A (School, Medical and other fees) are submitted online via the CBN Forex Application Form (link below). 
• Please select that it is a valid for FX request when submitting your application on the portal. 
• Supporting documents for PTA/BTA must be physically presented at the point of disbursement to complete the approval process. 
• PTA/BTA applications can be assessed at participatory bank branches. 
• PTA/BTA cannot be disbursed earlier than 14 days prior to your travel date.

After you apply, please note that: 

• Disbursement is subject to FX availability/allocation by the CBN and may take up to 30 days due to limited availability. 
• Application status tagged ‘Awaiting Disbursement’ on the trade monitoring portal does not mean  funds have been allocated by the CBN. 
• Your account must remain funded with the required amount for successful disbursement once funds are available. 
• Unutilized PTA/ BTA must be returned within two (2) weeks from the date of purchase to avoid regulatory sanctions.

CBN Forex Application Form Online https://www.tradesystem.gov.ng/landing/index.html?__sta=vhg.hhksexIhbhbochtfs%7CUHT&__stm_medium=email&__stm_source=smartech

The CBN’s Press Release on the Various Forex Application Categories

A. Travel Allowances

Having cleared the historic backlog of matured letters of credit at the inception of the current flexible exchange rate system, the CBN would immediately begin to provide foreign exchange to all
commercial banks to meet the needs of both personal travel allowances (PTA) and business travel allowances (BTA) for onward sale to customers. All banks would receive amounts commensurate with their demand per week, which would be sold to customers who meet usual basic documentary requirements.

B. School and Medical Fees

Similarly, the CBN would meet the needs of parents, guardians and sponsors who are seeking to make payments of school and educational fees for their children and wards. Such payments must be made by commercial banks directly to the institution specified by the customer. The CBN would ensure that this
process is as smooth as possible and that as many customers as possible get the foreign exchange they genuinely demand. This would also apply to customers seeking to make payments, or purchase foreign exchange, for medical bills and paid directly to hospitals. The supply of FX to retail end-users (PTA, BTA, School fees, medical bills, etc) would be sustained by the CBN.

C. Forward Sales Tenor

In order to further increase the availability of foreign exchange to all end-users, the CBN has decided to significantly reduce the tenor of its forward sales from the current maximum cycle of 180 days, to no more than 60 days from the date of transaction.

D. FX Sales at Major Airports

In order to further ease the burden of travellers and ensure that transactions are settled at much more competitive exchange rates, the CBN hereby directs all banks to open FX retail outlets at major airports as soon as logistics permit.