The Central Bank of Nigeria (CBN) has approved the use of cash transactions for Nigerian pilgrims undertaking the 2025 Hajj pilgrimage to Saudi Arabia.
This decision comes after Vice President Kashim Shettima intervened, urging President Bola Tinubu to reconsider the previously proposed mandatory use of debit cards for the Basic Travel Allowance (BTA).
His appeal was relayed through the National Hajj Commission of Nigeria (NAHCON), which had raised concerns that the card system could complicate the logistics and smooth execution of the pilgrimage.
Following a meeting with Shettima, NAHCON’s Commissioner for Policy, Personnel Management & Finance, Aliu Abdulrazaq, confirmed that pilgrims would now be permitted to carry cash for their travel allowances.
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Abdulrazaq said, “The meeting addressed the federal government’s policy on the card for BTA in 2025 Hajj operations. After a series of discussions, the Vice President took action and invited the Central Bank’s Deputy Governor to resolve the issue.
“Out of the magnanimity of the CBN and appeal made by the Vice President, they dropped the idea of a card forilgrims in the 2025 Hajj, and they conceded to people having cash instead of a card. This is a landmark achievement for NAHCON.
“If you go to Saudi Arabia, mostly the areas where the pilgrims are going to perform their rituals, there is only one Automated Teller Machine there, and it is always crowded – it poses so much difficulties for pilgrims to purchase whatever they want to purchase.
“Secondly, 95 per cent of the pilgrims from Nigeria are peasant farmers, and they have difficulties with electronic payments. Even with the cash, some of them have difficulties identifying the currencies. These variables make it important for them to have the cash they are used to.
“From now on, we are even more confident that the Hajj operations will be very seamless for the pilgrims. All arrangements have been in top gear, but the BTA was our fear; today, the fear has now been addressed.”
Earlier this year, CBN introduced a new payment method for the BTA for Nigerians travelling for the 2025 Hajj pilpilgrimage.
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Under the updated system, each pilgrim will be provided with an ATM card for withdrawals and transactions during their stay in the Kingdom of Saudi Arabia.
The new initiative also requires all intending pilgrims to open a BTA-linked bank account.
In response to the development, Mustapha Ali, Secretary of the National Hajj Commission of Nigeria (NAHCON), emphasised that the change is not a concession or subsidy from the federal government.
“There is a need for clarification we want to make. It is not a concession or intervention by the federal government. It is not a subsidy either.
“The Vice President intervened because most of the pilgrims make purchases in the streets of Mecca or Medina, and they do not need debit cards to make their purchases. Now it is allowed for them to carry cash. The CBN will provide the cash at the market rate,” he said.
The Director of Human Resources at the CBN and Board member representing the CBN at NAHCON, Abba Aliyu, explained the bank’s intervention.
He emphasised that the welfare of Nigeria pilgrims remains a top priority for the Nigerian government.
“Given the financial literacy of the pilgrims, it is crucial that we make things easier for them, as many are unfamiliar with how to use ATMs.
“These are among the reasons why, in response to the Vice President’s request, the senior management of the Bank kindly addressed these concerns,” he stated.
Aliyu also clarified that the government had concluded matters concerning concessions.
“What is being implemented is simply a change in the payment method. Instead of requiring pilgrims to carry cards, they will now receive payments in cash.”
