EDUCATIONAL FEE PAYMENT REGULATION

The Central Bank of Nigeria (CBN) is contemplating imposing an annual cap of $10,000 on payments for educational fees at foreign schools through Bureau De Change (BDC) operators.

Under the updated regulatory guidelines from the central bank concerning Bureau de Change (BDC) activities in Nigeria, customers will be restricted to purchasing a maximum of $10,000 in foreign currency annually specifically for school fees.

This process mandates that the transaction be conducted through the BDC's foreign currency account held in a Nigerian bank, ensuring a smooth payment directly to the educational institution.

The proposed regulations state: "BDCs are permitted to sell foreign currency up to the equivalent of USD10,000 to a customer for school fees once per year. This fee, transferred from the BDC’s domiciliary account with a Nigerian bank, must be directly paid to the school."

Furthermore, these transactions are subject to specific documentation requirements, including a completed e-Form A, proof of admission or course enrollment, the school's bill or invoice, and, for postgraduate studies, either a copy of the undergraduate degree certificate or an officially validated statement of achievements.