Tag: CBN

  • CBN approves BDCs’ participation in foreign exchange market

    CBN approves BDCs’ participation in foreign exchange market

     

    The Central Bank of Nigeria (CBN) says it has approved the participation of licensed Bureau De Change (BDC) operators in the Nigerian Foreign Exchange Market (NFEM).

    According to a circular signed by the Director, Trade and Exchange Department, Dr Musa Nakorji,, the move is part of efforts to improve foreign exchange liquidity in the retail segment of the market.

    The circular said that the CBN had also approved that weekly FX purchases by each BDC be capped at 150,000 dollars, and that utilisation comply with existing BDC operational guidelines.

    “All BDCs duly licensed by the CBN are permitted to access foreign exchange through any Authorised Dealer Bank of their choice, at the prevailing market rates.

    “The move aims to deepen market efficiency and ensure broader access to foreign exchange across the economy,”it said.

    The CBN, however, imposed strict compliance and risk-management conditions on the transactions.

    It said that authorised dealers were required to conduct full Know-Your-Customer (KYC) and due diligence checks on BDC clients before any FX sale.

    To strengthen transparency and accountability, the apex bank directed that all licensed BDCs must submit timely and accurate electronic returns in line with extant regulations.

    It added, “Any unutilised foreign exchange must be sold back to the market within 24 hours, as BDCs are prohibited from holding FX positions purchased from the NFEM.”

    The circular further restricts settlement practices, mandating that all FX transactions be conducted through settlement accounts with licensed financial institutions.

    It said that third-party transactions were prohibited, while cash settlement is limited to a maximum of 25 per cent of each transaction amount.

    “Overall, the directive reflects the CBN’s broader strategy to balance market access with strong regulatory oversight, ensuring liquidity in the foreign exchange market while safeguarding financial system integrity.

  • CBN upgrades Opay, Moniepoint, Palmpay, others to national licenses

    CBN upgrades Opay, Moniepoint, Palmpay, others to national licenses

     

    CBN upgrades Opay, Moniepoint, Palmpay, others to national licenses

    Tue,

     

    THE Central Bank of Nigeria (CBN) has upgraded the licenses of major FinTech companies and Microfinance Banks, including Opay and Moniepoint, to national status, allowing them to operate across the country following compliance with regulatory requirements.

    The upgrade applies to key players such as Moniepoint MFB, Opay, Kuda Bank, Palmpay, and Paga, which have grown rapidly through mobile technology and agent networks, effectively outgrowing their previous regional licenses.

    Director of the Other Financial Institutions Supervision Department, Yemi Solaja, confirmed this development in Lagos at the annual conference of the Committee of Heads of Banks’ Operations,
    He said: “Institutions like Moniepoint MFB, Opay, Kuda Bank, and others have now been upgraded. In practice, their operations are already nationwide.”

    Solaja emphasized the importance of physical presence for customer support, noting “Most of their customers operate in the informal sector. They need a clear point of contact if any issues arise.”

    With national licenses, these FinTechs are subject to higher capital requirements, for example, N5 billion for national MFBs, and must maintain offices for dispute resolution while continuing to drive financial inclusion.

    The reform follows previous enforcement actions, including 2024 penalties of N1 billion each on Moniepoint and Opay for KYC non-compliance, underscoring the CBN’s ongoing efforts to strengthen standards in digital finance.

    Vanguard

  • Licence revocation: Court refuses Aso Savings, Union Homes’ plea against CBN, NDIC

     

    The Federal High Court in Abuja on Monday, declined to grant an application seeking to stop the Central Bank of Nigeria (CBN) and Nigeria Deposit Insurance Cooperation (NDIC) from taking further actions over the recent revocation of licences of two mortgage financial institutions.

    The two institutions are Aso Savings and Loans Plc and Union Homes Savings and Loans Plc by the CBN.

    Justice Emeka Nwite, in a ruling on the plaintiffs’ ex-parte motion moved by their lawyer, Joseph Silas, rather held that the interest of justice would be better met by putting the defendants on notice.

    “I have listened to the submission of the counsel for the plaintiff/applicant and I have gone through the affidavit evidence, the exhibit including the written address.

    “I am of the opinion and I so hold that the interest of justice will be met by putting the defendants on notice.

    “I hereby ordered that the defendant be put on notice to come and show cause while the relief should not be granted,” the judge ruled.

    Justice Nwite, who sits as vacation judge, adjourned the matter until Jan. 5, 2026 for the defendants to show cause.

    The News Agency of Nigeria reports that Aso Savings, Union Homes, Ridhwan Hamza and Ismaila Adamu are 1st to 4th plaintiffs respectively in the motion ex-parte marked: FHC/ABJ/CS/2776/2025.

    The plaintiffs had sued the CBN and NDIC and 1st and 2nd defendants.

    In the motion dated Dec. 22 but filed Dec. 23 by Silas, they sought two reliefs.

    “An order of this honourable court restraining the defendants/respondents from taking further steps on the purported revocation of the operational licence of the 1st and 2nd plaintiffs, pending the hearing and determination of the motion on notice.

    “An order of this honourable court barring the defendants/respondents from enforcing their unlawful decision in any way, form or manner, against the 1st and 2nd plaintiffs/applicants, pending the hearing and determination of the motion on notice.”

    Given four-ground argument, the lawyer argued that the CBN did not follow the condition precedent to the invocation of its power to revoke the operating licence of the 1st and 2nd plaintiffs/applicants.

    Silas submitted that the NDIC also had, without allowing the two mortgage institutions to exhaust their rights of action, moved to curtail such rights by attempting to take over the 1st and 2nd plaintiffs/applicants.

    “That if the defendants/respondents are not restrained, they will impose upon the plaintiffs/applicants their unlawful decisions in an irreversible way.

    “That it is necessary to restrain the defendants/respondents from taking any other step in the interest of justice,” the lawyer said.

    In the affidavit in support of the motion ex-parte, Ridhwan Hamza, an Aso Savings Shareholder and the 3rd plaintiff in the suit, acknowledged that the institutions had operational challenges which was within the knowledge of the CBN.

    He averred that the CBN, without carrying out any measure to intervene on the failures of the plaintiffs, gave Aso Savings an ultimatum to meet its minimum capital requirement “by ensuring that all share reconstruction activities are concluded in a manner that fully address the capital shortfall not later than Aug. 31, 2025.”

    Hamza said: “I know that notwithstanding the positive updates made to the 1st defendant/respondent by the plaintiffs/applicants, on Dec. 16, 2025 in a press release titled, ‘Revocation of the Operational Licenses of Aso Savings and Loans Plc and Union Homes Savings and Loans Ple.

    ” The first defendant/respondent, relying on Section 12 of BOFIA 2020 and Section7.3 of its Revised Guidelines for Mortgage Banks, revoked the license of the plaintiffs/applicants.

    “I know that the 1st defendant/respondent grounded its decision on:

    “Failure to meet the minimum paid-up share capital requirement for the category of the bank licence granted to the plaintiffs/applicants

    “Having insufficient assets to meet its liabilities.

    “Being critically undercapitalised with a capital adequacy ratio below the prudential minimum ratio as prescribed by the 1st defendant/respondent; and

    “Failure to comply with several directives and obligations imposed upon the plaintiffs/applicants by the 1st defendant/respondent.”

    He, however, said that the CBN was aware of all the steps and progress made by the Aso Savings in raising its minimum capital requirement, with absolute success.

    He said CBN did not act in public interest when it made the press release revoking the operational license of the two institutions, without following the requirement of Section 34 (4) of the Banks and Other Financial Institutions Act, 2020.

    According to him, the action of the 1st defendant/respondent was arbitrary, rash unreasonable and runs contrary to public policy of developing the Nigerian economy, creating jobs and encouraging investments.

    Hamza said the NDIC had sent out messages to Aso Savings’ customers “asking them to fill out an online claims form against the plaintiffs/applicants, even as the law allows the plaintiffs/applicants a window of 30 days to challenge the actions of the 1st defendant/respondent.

    “I know that the steps taken by the 2nd defendant/respondent is aimed at extinguishing the right of the plaintiffs/applicants to challenge the actions of the 1st defendant/respondent by immediately commencing liquidation process.

    “I know that the plaintiffs/applicants have constitutional rights to be heard fairly and to challenge the actions of the defendants/respondents.”

    He said that the defendants would not be prejudiced by the granting of the application and that it was just, equitable and within the law that the application be granted.

    NAN had, on Dec. 16, reported the revocation of the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc by the CBN.

  • CBN reduces number of licensed BDCs to 82 under revised guidelines

    CBN reduces number of licensed BDCs to 82 under revised guidelines

     


    THE Central Bank of Nigeria (CBN) has granted final licenses to 82 Bureaux De Change (BDCs) to operate with effect from Nov. 27.

    A statement issued in Abuja on Monday by Mrs Hakama Sidi-Ali, CBN’s Acting Director, Corporate Communications Department, stated that the exercise was in line with its powers conferred under the Bank and Other Financial Institutions Act (BOFIA) 2020.

    According to Sidi-Ali, it is also an enforcement of the Regulatory and Supervisory Guidelines for BDC Operations in Nigeria 2024,

    “By this notice, only BDCs listed on the Bank’s website are authorised to operate from the effective date.

    “The CBN will continue to update the list of BDCs with valid operating licences for public verification on our website (www.cbn.gov.ng).

    “The Bank advises the general public to avoid dealing with unlicensed foreign exchange operators,” she said.

    She said that operating a BDC business without a valid licence was a punishable offence under Section 57(1) of the BOFIA 2020.

    She advised members of the public to note and be guided accordingly.

    The News Agency of Nigeria (NAN) recalls that at one point there were about 5,690 BDCs operating across Nigeria.

    But on March 1, 2024, the CBN revoked the licences of 4,173 BDC operators for regulatory non-compliance. After that revocation, the number of licensed BDCs dropped to around 1,517. (NAN)

  • Alleged disregard to judgment: Court fixes contempt proceeding against CBN Gov. for hearing

    Alleged disregard to judgment: Court fixes contempt proceeding against CBN Gov. for hearing

     

    The Federal High Court in Abuja has fixed June 23 for hearing of the contempt proceeding against the Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, over alleged disobedience to a Supreme Court judgment.

    Justice M.G Umar fixed the date after Chikaosolu Ojukwu, SAN, who appeared for the applicant, and CBN’s lawyer, Abdulfatai Oyedele, presented a brief argument when the case was mentioned.

    In June 2024, the Supreme Court overturned a previous forfeiture order against Melrose General Services Limited’s funds, which had been frozen following an investigation by the Economic and Financial Crimes Commission (EFCC).

    The disputed sums included N1,222,384,857.84 in Melrose’s bank account and N220 million paid by the company to Wasp Networks and Thebe Wellness as loan and investment.

    The apex court had ruled that the EFCC had not proven the funds were proceeds of fraud, as alleged.

    The court set aside the lower courts’ forfeiture orders, directing the release of the funds to their rightful owners.

    However, despite the Supreme Court’s decision, Melrose’s lawyers filed a lawsuit at the trial court, alleging that the CBN and its top officials had only partially complied with the judgment.

    Melrose, in its application before Justice Ekwo, averred that while the N1.22 billion was refunded, the outstanding N220 million remains unpaid.

    The disputed money was part of the Paris Club refund.

    The company, through its counsel, filed the contempt suit against the CBN governor; the apex bank’s Director of Legal Services, Salam-Alada Kofo; the EFCC and the Minister of Finance, arguing that their refusal to release the full amount constitutes contempt of court and undermines the Supreme Court’s authority.

    When the case was called, Ojukwu told the judge that the EFCC had written a memo to the CBN, instructing the apex bank to comply with the Supreme Court judgment.

    “That memo from EFCC is not even attached to the CBN’s affidavit before the Court,” he added.

    He alleged that the CBN knew that if they produced the EFCC memo in their documents, the court would see what transpired.

    He said that if the money was paid, his client would not have come to court.

    The judge then asked Abdulfatai if he was contesting Ojukwu’s submission.

    The CBN counsel maintained that the order of the Supreme Court was clear and that if Melrose is alleging disobedience to the order, it is not applicable to the CBN.

    He stressed that the money in respect of which Melrose went to the Supreme Court had been paid to the company.

    He said it is “strange for one entity to be demanding money that is due to other entities.”

    “With the greatest respect, the CBN has complied with the order of the Supreme Court.

    “We are not in contempt,” he said, highlighting that the apex bank had paid Melrose and Wasp, while the third entity was yet to be paid as the bank has not received a demand from them.

    After listening to the lawyers, the judge adjourned the case until June 23 for hearing.

    He also ordered that a hearing notice be issued to the defendants.

    Recalls that the dispute stems from the controversial Paris Club refund, a settlement involving payments to consultants for services rendered to the Nigerian Governors’ Forum (NGF).

    The EFCC had claimed that an investigation revealed N3.5 billion was allegedly fraudulently paid to the appellant for a purported consultancy job for the NGF.

    At the apex court, Melrose’s legal team argued that the disputed funds were payment for a contractual and consultancy agreement between their client and relevant government stakeholders

    In its majority decision, the Supreme Court agreed with the appellant, ruling that the EFCC failed to prove the funds were proceeds of fraud.

    Consequently, the court upheld the appellant’s case and set aside the lower courts’ forfeiture orders.

  • Court dismisses £990trn suit against CBN, bars claimant from.further instituting cases

    Court dismisses £990trn suit against CBN, bars claimant from.further instituting cases

     

    The Federal High Court in Abuja, on Wednesday, dismissed a 990 trillion pounds suit filed by a claimant, Mr Tunde Omosebi, against the Central Bank of Nigeria (CBN) for being incomprehensible.

    Justice James Omotosho, in a judgment, also held that the suit filed by Omosebi to seek redress over alleged breach of his fundamental rights, failed to disclose any reasonable cause of action against CBN and other defendants.

    Justice Omotosho, therefore, gave an order restraining Omosebi from personally filing any suit or process except same is filed by a legal practitioner or
    accompanied by a medical clearance from chief medical officer of National Hospital attesting to his state of mind and sanity

    The judge also gave an order restraining all the registries of the Federal High Court of Nigeria from accepting any process from the claimant for purpose of filing except same is done by a legal practitioner or accompanied by a medical clearance from chief medical officer of National Hospital attesting to his state of mind and sanity.

    “This suit is hereby dismissed for not being a fundamental rights suit, for lack of reasonable cause of action against any of the defendants and for being incomprehensible,” he declared.

    The News Agency of Nigeria (NAN) reports that Omosebi had, in the originating motion, sued the CBN Governor, Mr Olayemi Cardoso, as 1st defendant.

    He also joined the Chairman/Chief Executive Officer (CEO) of United Bank for Africa (UBA) Plc, Guarantee Trust Bank (GTB) Plc, Zenith Bank Plc respectively as 2nd to 4th defendants.

    Omosebi equally sued the Senate President, Godswill Akpabio, and House of Representatives’ Speaker, Tajudeen Abbas, as 5th to 6th defendants in the suit marked: FHC/ABJ/CS/766/2024.

    In the originating motion dated June 5, 2024, but filed Jan. 29, the claimant sought six reliefs.

    Omosebi prayed that “an order be entered for the sum of £990,000,000,000,000.00 (nine hundred and ninety trillion pounds) for traumatic torture and Enforcement of Fundamental Rights Rule, 2009 as guaranteed by the Constitution.

    “An order be entered that converts CENTRAL BANK OF NIGERIA to RESERVE BANK OF NIGERIA as guaranteed under SEC 212 of CRIMINAL CODE OF NIGERIA BANKS.

    “An order be entered that Nigeria banks involved with these financial irregularities, operating and contributed to the disadvantaged economy be converted to DRIG BANK with the Corporate Affairs Commission (CAC) per the industrial arrangements at the Assembly of Business Owners and the Federal Executive Council (FEC), and submit same to the Chairman, Federal Executive Council.”

    He further sought “exemplary damages against defendants for £99,000,000,000,000.00 (ninety-nine trillion pounds).

    “10% interest on the total recoverable amount.
    “N5,000,000.00 (five million naira) cost of suit.”

    The claimant, in the course of proceedings, joined more defendants in his suit without the leave of court.

    Omosebi, who referred to himself as “His Majesty,” a businessman and a politician in the statement attached to the application, also said he was as “the Chairman, Federal Executive Council, and Prime Minister of Federal Republic of Nigeria.”

    He said he gets paid based on his role, projects and contracts executed by his businesses, investments portfolio as contained in the corporate resolution.

    “At the trial of this suit, the applicant shall rely on the terms of the corporate resolution and schedule of distribution,” he said.

    Omosebi alleged that the defendants breached the assembly industrial agreement/arrangement, denied his Fundamental Right (Enforcement Procedure) Rule 2009, Sections 35, 43, 45 and Fundamental Objectives and Directives of State Policy 14(2)(b) and 16(1)(a-b).

    According to him, approximately four years ago, the applicant opened and operates few corporate and personal accounts with defendants 2 with aim of managing these finance per the constitution.

    “That, with no just cause, approximately seven (7) months till date, applicant’s corporate and personal accounts have been unaccessible due to defendants 2 & 3 negligence, oppressive and abusive conduct which violates the constitution and purpose of operating a bank.

    “That, defendant (2) agreed to deposit $50,000,000.00 (fifty million dollars) in applicant’s account with the bank in 2022 in the interim. and till date such has not been credited,” among other allegations.

    In a preliminary objection by the CBN governor’s lawyer, Favour Maikano, the lawyer argued that the court lacked jurisdiction to entertain the matter as the claimant had failed to disclose cause of action against her client.

    She said the suit was bereft of facts, hence, it was incompetent.

    The UBA, GTB, Zenith Bank, including the Senate President and the House speaker in their respective submissions, urged the court to dismiss the suit for failure to disclose cause of action against them.

    They argued that the claimant lacked the locus standi to sustain the action for the failure to disclose cause or reasonable cause of action against them.

    Delivering the judgement, Justice Omotosho held that two issues for determination “are whether the suit is competent or not and whether it discloses any reasonable cause of action.”

    He said in considering whether the claims of the plaintiff fell within Chapter 4 of the Constitution, the court looked critically at the reliefs to decipher if it really constituted fundamental right breach or not.

    “This court painstakingly read the reliefs and all the processes of the plaintiff and the more the court read, the more the court became confused as to what exactly the plaintiff was claiming.

    “There is no mention of the financial irregularities committed by the banks sued as defendants, including 1st defendant.

    “There is also no ground made out for the order to convert the ist defendant to the Reserve Bank of Nigeria neither is there anything to show why the other banks should be converted to DRIG Bank with the Corporate Affairs Commission,” he said.

    He said the court thoroughly researched the meaning of DRIG Bank without any result.

    “The court also researched if there was any legislation like Criminal Code of Nigeria Banks.

    “It is clear that these reliefs do not relate to breach of fundamental rights.

    “Thus, this suit is incompetent as constituted as the claims and processes of the plaintiff do not make out a case for breach of fundamental rights,” he said.

    Looking at the second issue, the judge observed that a reasonable cause of action is a claim with some chances of success.

    According to him, it does not connote a watertight claim but one which when considered critically raises some legal questions for the court to answer.

    “Usually, courts do not bother themselves with academic suits but on cogent and reasonable suits.

    “Where the cause of action is unreasonable, the court automatically loses its jurisdiction,” he said.

    The judge said a look Omosebi’s processes revealed he suffered no injury as a result of the CBN’s actions.

    “There Is nothing to show that the monetary policy of the 1st defendant affected him in any way,

    “He has also not disclosed if his money was misappropriated by any of the defendants.

    “The suit as a whole is simply a figment of the plaintiff’s imagination.

    “The entire processes are incomprehensible as it does not link any of the defendants to him in anyway,” he said.

    Besides, Justice Omotosho held that Omosebi also failed to provide any evidence to establish that he indeed operated few corporate and personal accounts with the defendants.

    “Also he did not place before the court how the defendants denied him access to the accounts. There is clearly no cause of action disclosed by the plaintiff against any of the defendants,” he said.

    Commenting on Omosebi’s behaviour, the judge said he observed that the plaintiff filed the suit on June 5, 2024 with only seven defendants and six reliefs.

    “On the 10th of July, 2024 the plaintiff filed a motion on notice where he added the Corporate Affairs Commission as 8th defendant and sought for nine reliefs without the leave of court.

    “Subsequently, on 17th of November, 2024 the plaintiff filed a motion ex-parte where the defendants became 57 in number, including all the airlines operating in Nigeria, and further increased the reliefs to 19 from the original six reliefs,” he said

    According to the judge, the plaintiff is simply trying to turn the rules of the court on its head through his confused and absurd amendment which are made without seeking leave of court to do so.

    “I observed that the plaintiff is not in the right frame of mind as expected of a reasonable person.

    “He is psychologically imbalanced and not fit to present his case if any in court.

    “This court is a place of serious business and has no time to entertain frivolous and confusing suits.

    “The time of this court is very precious and its docket is full of serious cases.

    “This court will therefore not waste any of its judicial time on a frankly incomprehensible suit filed by the plaintiff,” the judge said.

    Justice Omotosho also observed that Omosebi, in another suit filed against former Vice President Atiku Abubakar and others, equally exhibited the same behaviour.

    He said he observed that in the suit, he listed the address of the former vice president to be National Assembly Compkex, even when Atiku had never been a lawmaker.

    “The applicant claimed to be the Chairman of the Federal Executive Council as well as Prime Minister of Nigeria.

    “It is common knowledge that the chairman of the Federal Executive Council is the President of the Federal Republic of Nigeria which at this moment is President Bola Ahmed Tinubu.

    “Furthermore, Nigeria does not have Prime Minister, thus the applicant is occupying a nonexistent position,” he said.

    Justice Omotosho described the act as “a typical summersault which the applicant has become notorious for.”

    “This plaintiff must be prevented from filing these frivolous suits except he can present a certificate showing that he is psychologically normal or if he files through a verified legal practitioner,” the judge said.

    NAN observes that after the judge delivered the judgement, two senior advocates, who were in court for another matter, commented on the development.

    Mr Ikechukwu Ezechukwu, SAN, in his reaction, said he had never seen such a case before.

    “It gives me a reminder of Onitsha Market literature we read when we were small.

    “I thank my lord for taking time to reading through this trash,” he said.

    Ezechukwu, however, hailed the decision of the judge to bar Omosebi from further instituting suits personally any longer.

    Mr Sanusi Musa, SAN, said he would have called on the Nigerian Bar Association (NBA) to take action against the lawyer that filed the suit if it was a legal practitioner.

    “I was thinking who is this that filed this suit.

    “This however calls for action that a fellow Nigerian is sick and lacks family support.

    “He is coming to ask before my lord the money that is more that the budget of Nigeria,” he said.

    Musa, however, suggested that the suit be sent to the National Assembly as a case study on the need to amend the nation’s law to guard against the filing of frivolous cases.

    “It serves as a case of retrospection as this suit should be sent to National Assembly for them to know that the law needs to be amended so that no nonsense suit is brought to the court, looking at the time my lord took to study and write the judgment,” he said.

  • CBN Approves Cash-based BTA For 2025 Hajj Pilgrims To Ease Travel Demands

    CBN Approves Cash-based BTA For 2025 Hajj Pilgrims To Ease Travel Demands

     

    The Central Bank of Nigeria (CBN) has approved the request by pilgrims to be granted cash transactions for the holy pilgrimage to Mecca to ease the financial processes for the pilgrims.

    This followed 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).

    There had been concerns that the hitherto use of mandatory debit cards proposed by the CBN for the pilgrimage would endanger the smooth planning, operation, and performance at the 2025 Hajj.

    Speaking with journalists after a meeting with the Vice President, NAHCON’s Commissioner for Policy, Personnel Management & Finance, Aliu Abdulrazaq, confirmed that the CBN granted Nigerian pilgrims the opportunity of cash transactions for this year’s Hajj.

    He said, “The meeting was prompted by the policy of the federal government on the card for Basic Travel Allowance (BTA) for 2025 Hajj operations. We have held a series of meetings before now. The Vice President intervened and invited the Central Bank’s 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 in the 2025 Hajj, and they conceded to people having cash instead of a card. This is a landmark achievement for NAHCON.

    “If you go to Saudi Arabia, mostly the areas where the pilgrims are going to perform their rituals, there is only one Automated Teller Machine there, and it is always crowded – it poses so much difficulties for pilgrims to purchase whatever they want to purchase.

    “Secondly, 95 per cent of the pilgrims from Nigeria are peasant farmers, and they have difficulties with electronic payments. Even with the cash, some of them have difficulties identifying the currencies. These variables make it important for them to have the cash they are used to.

    “From now on, we are even more confident that the Hajj operations will be very seamless for the pilgrims. All arrangements have been in top gear, but the BTA was our fear; today, the fear has now been addressed.”

    The Central Bank of Nigeria (CBN) had earlier in the year introduced a new payment method for Basic Travel Allowance (BTA) for Nigerians embarking on the 2025 Hajj pilgrimage.

    Under the revised system, each pilgrim would be issued an ATM card for withdrawals and transactions during the pilgrimage in the Kingdom of Saudi Arabia. The initiative made it mandatory for all intending pilgrims to open a BTA-linked bank account.

    Adding his voice to the newcdevelopment, NAHCON’s Secretary, Dr Mustapha Muhammad Ali, clarified that the change is neither a concession nor a subsidy from the federal government.

    “There is a need for clarification we want to make. It is not a concession or intervention by the federal government. It is not a subsidy either. 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 to make their purchases. Now it is allowed for them to carry cash. The CBN will provide the cash at the market rate,” he said.

    Explaining the CBN’s intervention in the matter, the Director of Human Resources at the CBN and Board member representing the CBN in NAHCON, Abba Muhammad Aliyu, said the CBN granted NAHCON’s request because the welfare of Nigerian pilgrims was of utmost interest to the Nigerian government.

    “Looking at the financial literacy of the pilgrims, there is a need for us to see that we make life easy for them because a lot of them do not know how to operate the ATM. So, these are some of the reasons the senior management of the Bank, in their own magnanimity upon the call of the Vice President, looked at those issues.”

    He further clarified that the government was done with the concessionary issue, saying, “What is happening is purely a mode of payment method. Instead of asking the pilgrims to carry a card, they are only going to be paid through cash.”