NAHCON Secures CBN’s Cash PTA for 2026 Hajj, Shifts Full Digital Transition to 2027
The Central Bank of Nigeria has approved the use of cash-based Personal Travel Allowance (PTA) 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 engagements by the National Hajj Commission of Nigeria, led by its Chairman, Ismail Abba Yusuf, amid concerns raised by intending pilgrims and stakeholders over the immediate adoption of a card-based payment regime.
In a letter signed by its Department of Currency Operations and Branch Management, the apex bank confirmed that it had approved the payment of PTA in cash for the 2026 pilgrimage, stressing that the concession is strictly limited to this year’s Hajj 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 operations. It also directed NAHCON to intensify sensitisation efforts to prepare pilgrims for the transition to electronic payment channels.
The development has been widely welcomed across the Hajj ecosystem, particularly by intending pilgrims, many of whom had expressed concerns over the readiness of digital payment systems for a religious exercise of such scale.
Stakeholders had raised issues around digital literacy, especially among elderly pilgrims, as well as fears of possible system failures, card loss, and limited technical support in Saudi Arabia during peak pilgrimage periods.
A senior official at a state pilgrims’ welfare board, who spoke anonymously, said the approval would help prevent operational disruptions.
“This decision will prevent avoidable confusion and bottlenecks that could have affected travel arrangements and the overall Hajj experience,” the official said.
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Financial analysts described the move as a pragmatic adjustment rather than a reversal of policy, noting that the apex bank remains committed to its broader cashless policy objectives, including improved transparency, enhanced security, and reduced risks associated with large-scale cash transactions.
“The direction has not changed; only the timeline has been recalibrated,” a Lagos-based analyst said. “This reflects adaptive policymaking that recognises current constraints without abandoning reform.”
The planned shift to a card-based PTA system is expected to align Nigeria with global best practices in managing travel funds for large international gatherings such as the Hajj.
For NAHCON, the approval represents both a relief and a new responsibility. While the Commission has secured immediate flexibility for pilgrims, it is now expected to spearhead preparations for the full digital transition.
Observers say this will require robust public enlightenment campaigns, collaboration with financial institutions, pilot programmes, and the deployment of technical support teams in Saudi Arabia to assist Nigerian pilgrims when the digital system becomes fully operational.
The development also highlights broader challenges in implementing reforms within contexts shaped by structural limitations and socio-cultural realities. Experts emphasise the need for inclusivity, particularly for vulnerable groups such as elderly pilgrims and those from rural communities.
With the 2026 Hajj set to proceed under a hybrid framework, attention is expected to shift to sensitisation and system readiness ahead of 2027.
Analysts warn that the success of the eventual transition will depend largely on the effectiveness of preparatory measures taken in the coming months.
For now, the approval of cash PTA is seen as a timely intervention that balances reform objectives with practical realities, ensuring a smoother pilgrimage experience while keeping Nigeria on course toward digital financial transformation.
By PRNigeria
