CBN Bows to Pressure, Approves Cash Transactions for 2025 Hajj Pilgrimage

CBN Bows to Pressure, Approves Cash Transactions for 2025 Hajj Pilgrimage
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In a significant policy shift, the Central Bank of Nigeria (CBN) has approved the use of cash transactions for Nigerian pilgrims participating in the 2025 Hajj pilgrimage to Mecca. This decision comes after appeals from Vice President Kashim Shettima and the National Hajj Commission of Nigeria (NAHCON), aimed at safeguarding the welfare and operational efficiency of the holy journey.

Concerns had mounted within Nigeria’s Muslim community over the CBN’s earlier directive mandating the exclusive use of debit cards for the disbursement of Basic Travel Allowance (BTA) during the pilgrimage. Stakeholders argued that the cashless policy could disrupt planning and performance logistics during the annual spiritual exercise in the Kingdom of Saudi Arabia.

Aliu Abdulrazaq, NAHCON’s Commissioner for Policy, Personnel Management, and Finance, confirmed the regulatory approval, stating that Nigerian pilgrims would now have the option of conducting cash transactions alongside electronic payments during this year’s Hajj.

Earlier this year, the CBN introduced a revised payment method requiring all intending pilgrims to open BTA-linked bank accounts and utilize ATM cards for their financial transactions while in Saudi Arabia. The move was part of the government’s broader cashless economy initiative.

However, in a statement released by Stanley Nkwocha, Senior Special Assistant to the President on Media & Communications in the Office of the Vice President, NAHCON Secretary Dr. Mustapha Muhammad Ali clarified that the policy adjustment does not constitute a subsidy or financial concession from the federal government.

Explaining the rationale behind the reversal, Abba Muhammad Aliyu, CBN Director of Human Resources and board representative at NAHCON, emphasized that the decision was driven by the government’s unwavering commitment to the welfare of Nigerian pilgrims.

The approval ensures a smoother Hajj experience for over 90,000 Nigerian pilgrims expected to participate in the 2025 holy pilgrimage, aligning financial operations with both logistical needs and cultural expectations.

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