By OBSERVERS TIMES.
The Central Bank of Nigeria (CBN) has bowed to pressure and approved the disbursement of Basic Travel Allowance (BTA) in cash to Nigerian pilgrims for the 2025 Hajj. This decision marks a departure from the CBN’s earlier directive mandating the use of debit cards for all pilgrims, a move that had sparked concerns among Hajj organizers and intending pilgrims.
The CBN’s change of heart followed a compelling intervention by Vice President Kashim Shettima, who personally appealed to President Bola Ahmed Tinubu on behalf of the National Hajj Commission of Nigeria (NAHCON) and the numerous pilgrims preparing for the holy journey. The Vice President eloquently articulated the practical difficulties associated with a card-only policy, particularly for the significant portion of Nigerian pilgrims hailing from rural areas with limited financial literacy and access to digital payment infrastructure.
The breakthrough was confirmed by NAHCON’s Commissioner for Policy, Personnel Management & Finance, Aliu Abdulrazaq, following a crucial meeting with the Vice President. Speaking to journalists, Abdulrazaq conveyed the CBN’s magnanimity in granting Nigerian pilgrims the option of cash transactions for the upcoming Hajj.
According to a statement released by Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications, Office of the Vice President, Abdulrazaq elaborated on the challenges that necessitated the appeal. He highlighted the scarcity of ATMs in the primary pilgrimage areas in Saudi Arabia, leading to overcrowding and difficulties for pilgrims seeking to make purchases. More crucially, he emphasized that a staggering 95 percent of Nigerian pilgrims are peasant farmers who are unfamiliar and uncomfortable with electronic payment systems, even struggling to differentiate between currencies in some instances. These factors underscored the critical need for the familiar and accessible option of cash.
Abdulrazaq hailed the CBN’s decision as a “landmark achievement for NAHCON,” expressing confidence that the 2025 Hajj operations would now proceed more seamlessly for the pilgrims. He affirmed that all other arrangements were already well in progress, with the BTA payment method being the primary concern that has now been successfully addressed.
Adding context to the initial policy, it was revealed that the CBN had earlier introduced the mandatory ATM card system for BTA disbursement to 2025 Hajj pilgrims, requiring all intending pilgrims to open BTA-linked bank accounts.
NAHCON’s Secretary, Dr Mustapha Muhammad Ali, provided further clarification, emphasizing that the newly approved cash option was not a concession or subsidy from the federal government. “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 for these transactions. Now, they are allowed to carry cash, which the CBN will provide at the prevailing market rate,” he explained.
Abba Muhammad Aliyu, the Director of Human Resources at the CBN and the bank’s representative on the NAHCON board, underscored the CBN’s rationale for the policy shift. He stated that the welfare of Nigerian pilgrims was paramount to the government, and the decision was made considering the financial literacy levels of the pilgrims. “A lot of them do not know how to operate ATMs. These were key factors that the senior management of the Bank, upon the Vice President’s appeal, thoughtfully considered,” Aliyu stated.
He firmly clarified that the era of concessionary rates was over, and the current development solely pertains to the mode of payment, transitioning from mandatory card usage to the allowance of cash disbursement for the pilgrims’ BTA. This development is expected to be a welcome relief for thousands of Nigerian Muslims preparing for the spiritual journey to Mecca.
