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Tuesday, October 8, 2024

FG suspends Hajj fare subsidy for 2025 pilgrimage – NAHCON confirms

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Muslims planning to participate in the 2025 Hajj may face increased costs as the federal government of Nigeria has suspended subsidies for Hajj payments.

The National Hajj Commission of Nigeria (NAHCON) confirmed this in a statement released on Monday by the commission’s spokesperson, Fatima Sanda Usara.

The subsidies, which typically come in the form of a concessionary exchange rate, allow pilgrims to purchase dollars at a discounted rate from the Central Bank of Nigeria (CBN).

However, NAHCON announced that starting in 2025, the government will no longer provide this support. Usara stated, “There will be no concessionary exchange rate from the government for Hajj fare payment for pilgrims, whether through state or private Hajj operators.”

With the naira currently trading at ₦1,650 to the dollar, prospective pilgrims might need to pay nearly ₦10 million for the pilgrimage, considering the Hajj fare is estimated to be at least $6,000.

While NAHCON has yet to officially release the 2025 Hajj fare, some State Pilgrims Welfare Boards are asking pilgrims to make an initial deposit of ₦8.5 million, pending the final announcement.

The statement also included information regarding a refund of 150 Saudi Riyal (approximately ₦64,682) to every Nigerian pilgrim who participated in the 2023 Hajj.

These updates were provided during an interactive session between NAHCON and members of the Private Tour Operators in Nigeria (PTOs). The meeting, chaired by NAHCON’s Commissioner of Operations, Prince Anofi Olanrewaju Elegushi, highlighted new developments from Saudi Arabia’s Ministry of Hajj and Umrah (MoHU) and resolutions from NAHCON’s second EXCO meeting under the new Acting Chairman, Prof. Abdullahi Sale Pakistan.

One of the major changes announced was Saudi Arabia’s decision to reduce the number of Pilgrim Transport Operators (PTOs) from 20 to 10, with each operator now required to register at least 2,000 pilgrims to qualify for Hajj visa approval.

Regarding refunds from the 2022 Hajj, Elegushi explained that NAHCON is still gathering additional information, but refund details for PTOs operating in Field Office 18 have been released. These PTOs are set to receive a total of SR62,602 (₦26,993,224) due to inadequate meal services in the Masha’ir.

NAHCON also approved the option of using bank guarantees as a substitute for the ₦40 million caution deposit required for the 2025 Hajj. Operators who wish to switch to a bank guarantee may request a refund of any cash deposits already made.

Contrary to claims that NAHCON owes PTOs ₦17 billion from the 2024 Hajj caution deposit, Elegushi clarified that NAHCON received only ₦2 billion, ₦750 million from 110 registered companies. Of this amount, ₦1 billion was carried over from the previous year, and ₦750 million has been refunded to 30 companies that requested it. The remaining balance of ₦750 million is still held by NAHCON for PTOs that have yet to make a decision.

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