*Photo: NAHCON Chairman/CEO, Malam Jalal Ahmad Arabi (middle) at the Post Hajj 2024 Press Briefing in Abuja on Monday*
The Chairman/CEO of the National Hajj Commission of Nigeria (NAHCON), Malam Jalal Ahmad Arabi on Monday, gave a breakdown of how the Commission spent the N90 billion Federal Government’s intervention fund for the 2024 Hajj pilgrims.
Malam Arabi who spoke in Abuja at the Post Hajj 2024 Press Briefing said each pilgrim was supported with N1,637,369.87 from the N90 billion except for pilgrims under the Hajj Savings Scheme (HSS) who enjoyed more.
According to him, ” How to spread this N90 billion equitably, to such a degree that registered pilgrims would not have to pay additionally to the N4.9m, was tough.
” At first, the N90 billion would only cater conveniently for about 18,000 intending pilgrims out of the about 50,000 duly registered persons as at March 22, 2024.
” Subsequently, appreciation of the Naira to N1,474.00 in the month of May 2024 brought respite to our calculations as it meant a reduction from what the registered pilgrims would have to top up.”
He explained that NAHCON devised a distribution strategy which played a crucial role in ensuring that all the stakeholders associated with the 2024 Hajj benefited from the financial stability through the Federal Government’s support.
The NAHCON Chairman said ” Each pilgrim was supported with N1,637,369.87 from the N90 billion except for pilgrims under the Hajj Savings Scheme (HSS) who enjoyed more.
” Hence, 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’s intervention.”
Arabi also said that it was on record that eligible officials and stakeholders from all the tiers of government enjoyed the subsidy from the money.
On the pilgrims’ Basic Travel Allowance (BTA), he said that the commission, in agreement with the state pilgrims’ representatives, approved a BTA of $500 per pilgrim.
This, according to him, was part of measures put in place to reduce the cost of Hajj fare.
Arabi said,” As at April 24, 2024 when NAHCON remitted the pilgrims’ BTA into their respective States Pilgrims Welfare Boards accounts, the Dollar exchange rate was N1,252 to a dollar.
” Based on this rate, N626,000 was paid for the value of $500.
” However, the banks later issued BTA to pilgrims at a rate higher than N626 depending on the cost of foreign exchange at the time the respective states requested for the BTAs.
” This caused a shortfall to the original value.”
He said that the commission expected that the banks were supposed to honour the exchange rate obtainable on April 24, 2014, the day the BTA was deposited and to pay the pilgrims based on that rate.
Arabi assured that going forward, NAHCON would engage the Central Bank of Nigeria (CBN) to avoid future occurrence.
He added that NAHCON would continue to assess and improve its processes to better serve the pilgrims and uphold the sanctity and significance of Hajj.
Arabi said, ” Be rest assured that NAHCON remains committed to transparency and accountability in all aspects of our operations.
” We will continuously seek to improve our processes to ensure equitable access to facilities and services for all the pilgrims, thereby upholding the sanctity and inclusivity of the Hajj experience.”
Read the full statement below:
REFLECTING ON THE 2024 HAJJ: OVERCOMING CHALLENGES AND ACHIEVING SUCCESS.
Speech by NAHCON Chairman/CEO at the 2024 Post Hajj Press Briefing Held on 29th July 2024 at Blue Spring Hotel, Shehu Shagari Way,Opposite Ministry of Justice, Abuja
Thank you for joining us today for this briefing on the recently concluded 2024 Hajj. As you are aware, organizing such a monumental event involves overcoming numerous challenges, and I am pleased to provide you with an overview of the hurdles we faced, challenges we overcame and the modest successes recorded starting with the preparation stage.
Throughout the entire preparatory process, The National Hajj Commission of Nigeria (NAHCON) ensured that collaboration with key stakeholders was paramount. Executive Chairmen and Secretaries (ES) of State Pilgrims’ Welfare Boards (SPWBs) formed part of our decision-making caucus. They also played an integral role in the smooth execution of this year’s pilgrimage. The Commission did not take any major decision without consultation with SPWBs and indeed the Tour Operators.
After successful inspection and negotiation of cost-of-service delivery for the intending pilgrims to 2024 Hajj, the Hajj fare was totaled to cost $5,692.25; a reduction from 2023 Hajj fare of $6,401.31 at the exchange rate of N456.00
The first and significant challenge we encountered during the early stage was the slow remittance of Hajj fares by pilgrims. The National Hajj Commission of Nigeria NAHCON’s plan was to close registration early to provide it ample time to conclude arrangements. This plan could not materialize stemming from multiple requests from various State Pilgrims’ Welfare Boards (SPWBs), Ulamas, State Governors and other stakeholders for various extensions of deadlines to allow more intending pilgrims to register for the Hajj. The Commission succumbed in national interest, leading to delays that impacted our planning and calculation of the final Hajj fare.
Thankfully, cooperation and resilience of all involved parties ensured that our planning was not adversely affected as each stakeholder rose to the challenge. The same could not be said for the cost of Hajj fare, however.
Recall that by the final deadline of 12th February 2024, the unforeseen spike in foreign exchange rates had totally complicated matters, necessitating fresh adjustment of the year’s Hajj fare from the initially announced N4.9m. The financial projection after the foreign exchange liberalization was that each pilgrim would have to top up about 3.6 million Naira in addition to the initial payment.
The situation impelled urgent intervention. Recognizing the gravity of the situation NAHCON promptly engaged with the Federal Government to mitigate the effects of the high cost of the foreign currency with an appeal for government to approve a concessionary rate of N850 as exchange rate for the Dollar component of the Hajj fare. That appeal was further amplified by other reputable stakeholders in the project. We are grateful to President Bola Ahmed Tinubu for his swift approval of N90 billion Naira instead.
How to spread this N90 billion equitably, to such a degree that registered pilgrims would not have to pay additionally to the N4.9m, was tough. At first, the 90 billion Naira would only cater conveniently for about 18,000 intending pilgrims out of the about 50,000 duly registered persons as at 22nd March 2024. Subsequently, appreciation of the Naira to N1, 474.00 in the month of May 2024 brought respite to our calculations as it meant a reduction from what the registered pilgrims would have to top up.
NAHCON then devised a distribution strategy which played a crucial role in ensuring that all stakeholders associated with the 2024 Hajj benefited from the financial stability through this federal government’s support. Each pilgrim was supported with N1,637,369.87 from the N90billion except for pilgrims under the Hajj Savings Scheme (HSS) who enjoyed more. Hence, 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’s intervention. It is on record that eligible officials and stakeholders from all tiers of government enjoyed the subsidy from the N90 billion.
See attached list for table of the N90 billion distribution record.
Private Tour Operators (PTO):
From the outset, the leadership of the PTO had indicated their intention to opt for a service provider other than Ithra Al Khair. While the Commission did not object, NAHCON requested that the PTOs inform it of their decision. Throughout the Hajj and Umrah Exhibition, the PTO had the freedom to explore and evaluate various service providers without any restrictions. However, when the PTO leadership, under the Association of Hajj and Umrah Organizations in Nigeria (AHUON), finally announced their choice, it was met with considerable dissent from its members.
As a result, NAHCON convened a meeting involving all 110 registered PTOs to address the matter. During this meeting, the Commission publicly requested the AHUON leadership to justify their selection in front of their members. The house remained divided during and even after the meeting. They were encouraged to reach a consensus on their decision, with NAHCON emphasizing that continued discord could prove disruptive to the 2024 Hajj preparations, which might compel us to intervene with a decision.
Ladies and gentlemen, with authority conferred on the Commission to take relevant decisions on matters of interest to Hajj management, we instructed the PTO’s, to toe the line of NAHCON, and work with the Ithra al Khair Service Providers (the inherited Service Providers) since their impasse could not be resolved. This decision was made after the leadership of the association failed to reach a consensus with its members.
Consequently, NAHCON requested AHUON members to remit their Hajj fares and other charges into NAHCON’s CBN account to enable the Commission credit the PTO respective IBAN account for visa processing. The third in the series of deadlines elapsed by 9th February 2024 without any member paying even N1.00 (one Naira) into the Commission’s CBN account. Instead, information reached NAHCON from the Ministry of Hajj and Umrah that the PTOs contacted the authorities in the Kingdom of Saudi Arabia to remit their funds directly.
This was met with a disapproval by the Hajj Ministry insisting that the Private Tour Operators must pay through the only recognized channel in Nigeria which is NAHCON. A letter was sent to the Commission from the Ministry complaining of PTO’s and other stakeholders not following the right channel in their preparatory activities. In fact, before the AHOUN members were sent back by the Hajj and Umrah Ministry, the Deputy Minister put a call to me as the Chairman of NAHCON to re-affirm that Saudi Arabia will not honor any payment or arrangements that were not made through the Commission as the only recognized body representing Nigeria; and we did convey same message to all concerned.
By then, a lot of time had been wasted and visa processing by Saudi Arabia was already reaching the deadline. Despite these delays, we remained committed and used different methods to ensure that all pilgrims received the necessary support that would enable them undertake their Hajj journey. The Commission kept interceding and extending visa deadline on behalf of PTO’s up to 5th of June 2024. Still some PTOs went to the media to claim NAHCON was holding them back.
Ladies and Gentlemen, NAHCON even took the bold step of utilizing and risking its own funds by advancing payment for tour operators who found themselves in difficult situations transmitting their money into their IBAN account. At a point, precisely on 8th June, I directed the Commission’s Saudi Liaison Officer to travel to Nigeria to collect PTOs cheques and return the next day to Saudi Arabia to facilitate direct payment into their Bank Accounts in the Kingdom on the 9th June. This was done to reduce bureaucratic obstacles that could have delayed the approval of some PTOs payments potentially affecting visa processing for their pilgrims.
The Commission did this just to ensure that the PTOs fulfill their commitments to their clients to travel for the Hajj. As we approached the critical stage of Arafat, some payments from PTOs made online had not yet been accredited but they had the grace of our funds being utilized on their behalf. I assure you dear listeners that some of these remittances into our account for onward transfer into the PTOs IBAN account got credited only on the day of Arafat. Ultimately, the affected pilgrims would not have performed Hajj but for the Commission’s proactiveness.
PTOs and 90 billion Intervention:
AHUON sent a request for its members to also benefit from the government’s intervention since they were also affected by the escalating exchange rate. Firstly, Federal Government had requested NAHCON to give pilgrims under government quota priority in the N90 billion intervention because pilgrims under this category are the ones that had been depositing their Hajj fare for long for the pilgrimage. Secondly, the Commission reasoned with the PTOs that they are businessmen and women in the pilgrimage sector whose clients are mostly from the affluent in the society. Hence, the Commission as advised stood its ground that the 90 billion Naira intervention approved by President Bola Ahmed Tinubu, was an initiative that primarily targeted pilgrims under the government quota whose financial statuses are not as strong. AHUON protested.
Pilgrims’ Basic Travel Allowance (BTA):
The Commission, in agreement with state pilgrims’ representatives approved a BTA of $500 per pilgrim: as a measure of reducing the cost of Hajj fare. It was rational for any pilgrim in need of more Dollars to source same through the open market since the rates were the same.
As at 24th April 2024 when NAHCON remitted the pilgrims’ BTA into their respective SPMBs accounts, the Dollar exchange rate was N1,252 to a Dollar. Based on this rate, N626,000 was paid for the value of $500 (Five hundred Dollars). However, the banks later issued BTA to pilgrims at a rate higher than N626 depending on the cost of foreign exchange at the time the respective states requested for the BTAs, causing a shortfall to the original value. The Commission expected that the Banks were supposed to honor the exchange rate obtainable on 24th April, the day the BTA was deposited and to pay the pilgrims based on that rate. Going forward we shall engage the CBN on that scenario.
TENT A:
Regarding the issue of VIP tents during the 2024 Hajj pilgrimage, NAHCON is the supervisor and not operator. The VIPs paid for an upgrade from Tent D to Tent A via private Hajj operators. As far as NAHCON’s visa regulation was concerned which was in tandem with the Saudi Ministry of Hajj and Umrah policy, Tent D was the category required for visa issuance, and of course, visa issuance was sole responsibility of NAHCON. After securing the visas based on the Camp D category, the usual practice was for VIPs to pay for VIP tent upgrades through the Private Operators as the body recognized to do so. This invariably exonerates NAHCON from any blame of not securing Tent A for the VIPs because NAHCON does not collect payment from individuals. Thus in 2024 as well, majority of the VIPs later paid for an upgrade from Tent “D” to Tent “A” via private Hajj operators and not NAHCON.
Realizing that the system had changed and there was no more upgrade allowed, the Commission tried to intervene on behalf of some officials and states. Those states that leveraged the goodwill of NAHCON in the Ministry, secured the few tents upgrade in Mina and Arafat for their principals. For instance, of ONLY 17 tent “A” spaces granted to the Commission after series of demands, nine were given to Jigawa while the remaining eight were taken by Niger officially. It would appear that Niger, other states and some interested pilgrims that needed more allocations still chose to go back through the tour operators despite the new policy; but the deal collapsed.
As we reflect on the challenges overcame and the successes recorded, I am proud to report that notwithstanding the reservations entered which we appreciate was within individual rights, the 2024 Hajj was a success: thanks to cooperation and coordination with stakeholders, including State Pilgrims’ Welfare Boards and some tour operators. This board under my leadership remains committed to learning from these experiences and improving our processes to better serve the pilgrims in future endeavors. NAHCON will continue to assess and improve our processes to better serve the pilgrims and uphold the sanctity and significance of Hajj.
Be rest assured that NAHCON remains committed to transparency and accountability in all aspects of our operations. We continuously seek to improve our processes to ensure equitable access to facilities and services for all pilgrims, thereby upholding the sanctity and inclusivity of the Hajj experience.
I welcome any further inquiries you may have on this or other matters related to the 2024 Hajj pilgrimage.
Thank you once again for your attention.
Jalal Ahmad Arabi OON fwc
NAHCON Chairman/CEO.
