By Abubakar Yunusa
The Central Bank of Nigeria(CBN ),has approved the use of cash-based Personal Travel Allowance for Nigerian pilgrims participating in the 2026 Hajj, granting a one-year reprieve from its planned transition to a fully electronic payment system.
The decision followed high-level engagement by the National Hajj Commission of Nigeria, led by its Chairman, Ambassador Ismail Abba Yusuf, amid growing concerns over the feasibility of an immediate switch to a card-based regime.
In a letter signed by its Department of Currency Operations and Branch Management, the apex bank confirmed it had “graciously granted approval for payment of cash as PTA for the 2026 pilgrimage,” stressing that the concession is limited strictly to this year’s exercise.
The CBN, however, reaffirmed its commitment to financial system modernisation, stating that a fully digital, card-based PTA framework will take effect from the 2027 Hajj. It directed NAHCON to begin aggressive sensitisation of pilgrims on electronic payment channels ahead of the transition.
The development has been welcomed by stakeholders across the Hajj value chain, particularly intending pilgrims, many of whom had expressed concerns over digital readiness for a religious exercise of such magnitude.
Findings showed that apprehension centred on low digital literacy among elderly pilgrims, fears of system failure, card loss, and inadequate technical support in Saudi Arabia during peak periods.
A senior official at a state pilgrims’ welfare board, who spoke on condition of anonymity, said the decision would “prevent avoidable confusion and operational bottlenecks,” warning that a sudden shift could have disrupted travel arrangements.
Financial analysts described the move as a tactical adjustment rather than a policy reversal.
“The direction has not changed; only the timeline has been recalibrated,” a Lagos-based analyst said, noting that the decision reflects adaptive policymaking in the face of practical constraints.
Experts added that the planned transition aligns with global best practices in managing travel funds for large international gatherings such as the Hajj, with benefits including improved transparency and enhanced security.
For NAHCON, the approval provides immediate relief but also places responsibility on the commission to prepare pilgrims for the inevitable shift to digital payments.
Industry observers said this would require robust public enlightenment, collaboration with financial institutions, pilot schemes, and deployment of technical support teams in Saudi Arabia ahead of 2027.
The development underscores the broader challenge of implementing reforms in a society where structural and socio-cultural factors influence policy outcomes, especially in sectors involving vulnerable populations.
With preparations for the 2026 Hajj underway, attention is expected to shift to readiness for the 2027 transition, as stakeholders emphasise the need for a phased and inclusive approach.
