NAHCON: FG’s N90bn hajj subsidy prevented pilgrims from paying N3.6m

The National Hajj Commission of Nigeria (NAHCON) says the N90 billion approved by President Bola Tinubu was used to subsidise the fare of pilgrims.

Addressing a press conference in Abuja on Monday, Jalal Arabi, the commission’s chairman, said the rise in foreign exchange rates necessitated adjustments to the hajj fare.

The chairman noted that the commission implemented a support strategy using the N90 billion intervention to assist pilgrims, particularly those under the hajj savings scheme.

“By the final deadline of February 12, 2024, the unforeseen spike in foreign exchange rates had totally complicated matters, necessitating fresh adjustment of the year’s Hajj fare from the initial N4.9 million,” Arabi said.

“The financial projection after the foreign currency liberalisation was that each pilgrim would have to top up about N3.6 million in addition to the initial payment. The situation impelled urgent intervention.

“Recognising the gravity of the situation,  NAHCON promptly engaged with the Federal Government to mitigate the effects of the high cost of foreign currency with an appeal for the government to approve a concessionary rate of N850 as exchange rate for the dollar component of the hajj fare.

“We are grateful to President Bola Tinubu for his swift approval of N90 billion. How to spread this N90 billion equitably, to such a degree that registered pilgrims would not have to pay additionally to the N4.9 million was tough.

“Appreciation of the Naira to N1,474.00 in the month of May brought respite to our calculations as it meant a reduction from what the registered pilgrims would have to top up.

“However, the N90 billion would have only catered for about 18,000 intending pilgrims out of the about 50,000 duly registered persons as of 22nd March.”

He said some pilgrims were supported with about N1.64 million from the N90 billion intervention fund.

“NAHCON then decided on a distribution strategy which played a crucial role in ensuring that all stakeholders associated with the 2024 hajj benefitted from the financial stability through this federal government support. 

“Each pilgrim was supported with N1,637,369.87 million from the N90 billion except for pilgrims under the Hajj Savings Scheme who enjoyed more.

“All registered intending pilgrims, except those on HSS, were required to pay a balance of N1,918,094.87 since the N90 billion was not sufficient to make up for the balance.

“However, new registrants were asked to pay N8,454,464.74 being exempted from the Federal Government N90 billion.

“Officials from stakeholders such as Ulama, media team, medical team, security team, the presidency and National Assembly were paid their service allowances from the intervention fund but in the range of ¼ of what used to be the standard amount.”

Arabi said the long-standing issue between private tour operators in Nigeria and NAHCON officials in Saudi during the 2024 Hajj has been resolved.