CBN approves cash payments for hajj pilgrims’ basic travel allowance

The Central Bank of Nigeria (CBN) has approved cash-based payments for the basic travel allowance (BTA) of Nigerian pilgrims heading to Saudi Arabia for this year’s hajj.

A statement issued on Thursday by Stanley Nkwocha, senior special assistant to the president on media and communications (office of the vice president), said the decision followed Vice-President Kashim Shettima’s intervention.

Earlier in the year, the CBN had introduced a debit card-only policy for pilgrims seeking access to their BTA for the pilgrimage.

Speaking with journalists after a meeting with Shettima, Aliu Abdulrazaq, NAHCON’s commissioner for policy, personnel management, and finance, said the CBN had agreed to allow cash transactions.

Abdulrazaq explained that the meeting was prompted by the government’s earlier insistence on the use of debit cards to access the BTA.

“Out of the magnanimity of the CBN and the appeal made by the vice-president, the idea of a card-only system for pilgrims in the 2025 Hajj has been dropped,” he said.

“This is a landmark achievement for NAHCON. In Saudi Arabia, particularly in the areas where pilgrims perform their rituals, there is often only one automated teller machine (ATM), which is usually overcrowded and causes difficulties for pilgrims when they try to make purchases.

“But now, we are confident that Hajj operations will be much smoother for the pilgrims, as all arrangements are in place. Even the BTA issue that concerned us has now been resolved.”

Similarly, Mustapha Ali, NAHCON’s secretary, clarified that the decision should not be seen as a government concession or financial support.

“There is a need for clarification. This is not a concession or intervention by the federal government, nor is it a subsidy,” he said.

“The vice-president intervened because most pilgrims make purchases in the streets of Mecca or Medina, and they do not need debit cards for those transactions.

“Now, they are allowed to carry cash. The CBN will provide the cash at the market rate.”

Abba Aliyu, director of human resources at the CBN and a NAHCON board member, said the move was motivated by the apex bank’s concern for the welfare of Nigerian pilgrims.

“Considering the financial literacy of many pilgrims, we need to make their lives easier, as many are not familiar with how to operate ATMs,” he added.