CBN approves cash-based BTA for pilgrims

The Central Bank of Nigeria (CBN) has granted approval for Nigerian pilgrims to use cash during the 2025 Hajj in Makkah, reversing its earlier decision to mandate debit card-only transactions for Basic Travel Allowance (BTA).

This reversal comes after Vice President Kashim Shettima made a formal appeal to President Bola Ahmed Tinubu on behalf of the pilgrims, through the National Hajj Commission of Nigeria (NAHCON).

Concerns had been mounting that enforcing a cashless policy could hamper the smooth coordination of the Hajj, especially given the logistical and financial literacy challenges many Nigerian pilgrims face.

Speaking to journalists after a high-level meeting with the Vice President, NAHCON’s Commissioner for Policy, Personnel Management and Finance, Aliu Abdulrazaq, confirmed the CBN’s decision.

“The meeting was necessitated by the Federal Government’s initial policy on the use of cards for BTA during the 2025 Hajj,” he said. “We had engaged in several discussions, but it was the Vice President’s intervention, alongside the presence of the Central Bank’s Deputy Governor, that finally moved things forward.”

According to Abdulrazaq, the CBN, following the Vice President’s request, has agreed to allow cash disbursement rather than enforce the proposed debit card policy. He described the outcome as a significant breakthrough for NAHCON and the pilgrims alike.

He explained that most areas within Saudi Arabia where rituals take place are not equipped with adequate ATM infrastructure.

“In fact, there’s just one ATM near the pilgrimage zones and it is constantly overwhelmed. This makes it incredibly difficult for pilgrims to access funds for essential purchases,” he said.

Abdulrazaq added that around 95 percent of Nigerian pilgrims are rural farmers who struggle with electronic payment systems. “Even with cash, many face challenges identifying foreign currency. So it makes much more sense to stick with what they are used to. We can now look forward to smoother Hajj operations.”

Earlier this year, the CBN had introduced a new BTA policy requiring all pilgrims to receive ATM cards tied to special BTA accounts, for all transactions during the pilgrimage in Saudi Arabia.

However, NAHCON’s Secretary, Dr Mustapha Muhammad Ali, stressed that the recent policy change should not be misinterpreted as a financial concession or subsidy from the Federal Government.

“This is not about offering a concession or granting financial aid. It’s a matter of practical necessity,” he said. “Most purchases made by pilgrims in Makkah or Madinah take place in informal markets where cards are not accepted. This is why the Vice President stepped in. Pilgrims will now be able to carry cash, which the CBN will issue at the market rate.”

Also weighing in on the development, Director of Human Resources at the CBN and the Bank’s representative on the NAHCON board, Abba Muhammad Aliyu, said the CBN’s decision was influenced by concern for the pilgrims’ welfare.

“We had to consider the financial literacy levels among the pilgrims. Many have little or no experience using ATMs. It is our duty to ease their experience during the Hajj. That is what prompted the senior management of the CBN to take a closer look at the policy after the Vice President’s call,” he explained.

In a related update, NAHCON Chairman, Professor Abdullahi Saleh Usman, has called on Tour Operators seeking premium Tent A accommodation through Rawaf Mina to settle the required payments to secure the available facilities.

This announcement followed a virtual meeting held on Wednesday night with the Rawaf Mina Service Providers, who have signed a partnership agreement with NAHCON to deliver VIP accommodation services during the pilgrimage.

The Rawaf Mina Company confirmed it has secured 2,800 high-end bed spaces in a new five-storey building located a short distance from the Jamrat. The structure features 23 rooms on the ground floor and 30 rooms each on the second, third, and fourth floors.

Professor Usman urged Tour Operators to expedite their registration process, noting that the Rawaf Mina Company intends to begin issuing NUSUK access cards as soon as all registration steps are finalised.

He added, “Operators whose pilgrims originally selected Tent A but were temporarily listed under Tent D must now pay the outstanding balance. This will confirm their placement and ensure that their transportation arrangements are properly redirected to the correct accommodation site in Muna.”