CBN Makes It Easier for Muslims to Perform 2025 Hajj Pilgrimage to Mecca
- The CBN will allow pilgrims to use cash instead of debit cards for the Basic Travel Allowance (BTA)
- The decision comes after concerns that the mandatory use of debit cards for BTA would create challenges for pilgrims,
- Vice President Kashim Shettima had to speak with the CBN to allow the use of particularly due to limited ATM access and the financial literacy of many Nigerian pilgrims
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Central Bank of Nigeria (CBN) has approved cash transactions for Nigerian pilgrims going for the 2025 Hajj pilgrimage to Mecca.
This was disclosed in a statement signed by Stanley Nkwocha, Senior Special Assistant to the President on Media & Communications (Office of the Vice President).
Source: Getty Images
According to the statement, this decision follows the intervention of Vice President Kashim Shettima, who appealed to President Bola Ahmed Tinubu on behalf of the pilgrims through the National Hajj Commission of Nigeria (NAHCON).
Earlier this year, the CBN introduced a new payment system for Basic Travel Allowance (BTA), requiring pilgrims to use ATM cards linked to a BTA account.
But there were real concerns that this system could create significant challenges for the smooth operation of the 2025 Hajj, particularly in light of the limited access to ATMs and the difficulties some pilgrims have with electronic payments.
However, after the Vice President’s intervention, the CBN decided to revert to cash payments, which will be provided at the market rate.
How did the CBN payments work?
Speaking after a meeting with the Vice President, Aliu Abdulrazaq, NAHCON’s Commissioner for Policy, Personnel Management & Finance, confirmed that the CBN had agreed to allow Nigerian pilgrims to use cash during the pilgrimage.
He expressed relief that the issue had been resolved.
He said:
“The meeting was prompted by the policy of the federal government on the card for BTA for 2025 Hajj operations.
“The Vice President intervened and invited the CBN Deputy Governor with a plea. Out of the magnanimity of the CBN and appeal made by the Vice President, they dropped the idea of a card for pilgrims and conceded to people having cash instead of a card. This is a landmark achievement for NAHCON.”
He further explained that Saudi Arabia’s limited ATM infrastructure, with only one machine often crowded with pilgrims, posed difficulties for Nigerian pilgrims trying to make purchases.
Source: Getty Images
Abdulrazaq added that 95% of the pilgrims are peasant farmers who are not accustomed to electronic payments, making cash transactions essential.
Abdulrazaq added:
"Now, we are even more confident that the Hajj operations will be seamless for the pilgrims. "All arrangements have been in top gear, but the BTA was our fear; today, the fear has now been addressed."
Clarifying the change, NAHCON’s Secretary, Mustapha Muhammad Ali, stated that the adjustment is not a subsidy or concession from the federal government, but rather a necessary measure to accommodate the needs of the pilgrims.
He explained:
“Most of the pilgrims make purchases in the streets of Mecca or Medina, and they do not need debit cards to make their purchases."
CBN lists all approved charges for bank accounts
Ealier, Legit.ng reported that the Central Bank of Nigeria has shared the list of approved bank charges for commercial banks and other financial institutions.
The charges covered services such as transfers, withdrawals, card maintenance, and electronic banking fees.
The move aims to promote transparency and consumer protection to avoid excessive charges in the financial sector.
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Source: Legit.ng
