CBN didn’t subsidise forex for hajj pilgrims, Emefiele insists

Godwin Emefiele, governor of the Central Bank of Nigeria (CBN), says neither the bank nor the federal government subsidised foreign exchange for 2016 hajj pilgrims.

Earlier, the CBN released a circular showing that 65,167 pilgrims were getting forex at N197 to a dollar, which is against the current foreign exchange policy.

The presidency had denied the subsidy, saying there was no discrimination against Christian pilgrims.

Corroborating presidency’s stance, Emefiele said the deal between the CBN and the pilgrims was consummated long before the new forex policy was implemented.

“Pilgrims made what is called advance payment for their personal travel allowance, in this case $750,” Emefilele said at a press conference in Abuja.

“They make those advance payments to the state pilgrims board, and then the state passes it to the national body, who in this case has reached an agreement with the central bank about the appropriate rate that would be used.

“For 2015, it is important for me to go back. In 2015, when the market rate was 197, the pilgrims commission, Christians and Muslims, actually came to the central bank and agreed at N160 to the dollar, even when the market was 197. That was an agreement and a contract reached.

“For 2016, the pilgrims commission came to the Central Bank of Nigeria, and we agreed that it had to be done at the market rate, which at that time was N197.”

Emefiele said it would be against business ethic to direct the pilgrims to pay the difference in the old and new forex rate, on a previously-signed contract.

“The contract was reached sometime around March and April this year. I would think it would be inappropriate at this time, because the exchange rate has adjusted, that we should go back to the pilgrims and pay the difference.

He said the CBN, as a business, could not breach a contract reached by both parties.