Byline: Juliana Taiwo-Obalonye, Abuja
The Central Bank of Nigeria (CBN) on Wednesday approved cash transactions for the Basic Travel Allowance (BTA) of Nigerian pilgrims for the 2025 Hajj in Mecca, replacing the mandatory ATM card policy.
The decision followed Vice President Kashim Shettima’s appeal to President Bola Ahmed Tinubu through the National Hajj Commission of Nigeria (NAHCON).
Earlier this year, the CBN required pilgrims to open BTA-linked bank accounts and use ATM cards for transactions during the pilgrimage. However, concerns arose about limited ATM availability in Saudi Arabia and low electronic payment literacy among pilgrims, many of whom are rural farmers.
NAHCON’s Commissioner for Policy, Personnel Management and Finance, Aliu Abdulrazaq, confirmed the policy reversal after meeting with the Vice President. “Out of the magnanimity of the CBN and appeal made by the Vice President, they dropped the idea of a card for pilgrims in the 2025 Hajj, and they conceded to people having cash instead of a card,” he said. “This is a landmark achievement for NAHCON.”
Abdulrazaq highlighted the challenges, stating, “There is only one Automated Teller Machine there, and it is always crowded – it poses so much difficulty for pilgrims to purchase whatever they want to purchase.”
He added, “95 per cent of the pilgrims from Nigeria are peasant farmers, and they have difficulties with electronic payments. Even with cash, some have trouble identifying currencies. These factors make it important for them to have the cash they are used to.”
NAHCON’s Secretary, Mustapha Ali, clarified that this is not a government subsidy but a practical adjustment. “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,” he said. “Now it is allowed for them to carry cash. The CBN will provide the cash at the market rate.”
CBN’s Director of Human Resources and NAHCON Board member, Abba Aliyu, explained, “Looking at the financial literacy of the pilgrims, there is a need for us to make life easy for them because many do not know how to operate the ATM.” He emphasised, “What is happening is purely a mode of payment method. Instead of asking the pilgrims to carry a card, they are only going to be paid through cash.”
Civil society groups and Hajj reporters had warned that the ATM card policy would create hardship due to Saudi Arabia’s limited ATM infrastructure and pilgrims’ unfamiliarity with electronic payments. The cash-based BTA is expected to simplify transactions, allowing pilgrims to focus on their spiritual duties without payment-related stress.