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Home Features Hajj 2024:Who will Bail the Cat? by  Ibrahim Dan Halilu
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Hajj 2024:Who will Bail the Cat? by  Ibrahim Dan Halilu

By
Ibrahim Dan-halilu
-
March 27, 2024
HAJJ Pilgrims pilgrimage NAHCON
HAJJ Pilgrims NAHCON

Hajj 2024:Who will Bail the Cat? by  Ibrahim Dan Halilu

The recent announcement by the National Hajj Commission of Nigeria, NAHCON informing intending pilgrims about the change in the amount they will pay for 2024 Hajj did not come as a surprise.

The Commission had prepared the minds of the intending pilgrims for an increase a early as January when it announced that pilgrims can make an initial deposit of 4.5m Naira pending the determination of the final figures. .

By that first announcement, no intending pilgrim was left in doubt as to the possibility of making additional payment to complete the official fare that was not known at that time.

Early February, NAHCON was confronted by the reality of volatile exchange rate regime, resulting in another upward review of the fare to 4.8m Naira.

Few days ago, the commission in a press statement signed by Fatima Sanda Usara, Assistant Director, Public Affairs, said the commission was compelled to review the fare upward by additional 1.9m Nara, which has hiked the Hajj fare to between 6.8m to 6.9m Naira for northern and southern pilgrims respectively.

It advised fresh applicants wishing to make payment for 2024 Hajj to do so on or before March 28th as it would be closing its platform on March 29th. The new applicants are required to pay between 8.2m to 8.5m Naira for the northern and southern pilgrims respectively.

The Commission further expressed regret over the unavoidable increase which was necessitated by the Naira crash in recent months.

Before some Islamic clerics and intending pilgrims start calling for the head of the NAHCON Chairman, Alhaji Jalal Ahmad Arabi under whose tenure the Hajj fare was skyrocketed, it’s pertinent to examine the genesis and trajectory that led to this unexpected increase of over 4m Naira from last year’s 2.8million Naira.

Several factors combined to produce this unfortunate outcome that are beyond the powers of NAHCON to control.

The first is the change in fiscal and monetary policy of the Tinubu administration, especially the removal of subsidy on dollar exchange rate popularly now as Naira floating.

President Tinubu’s economic team want the Naira to finds it’s true value through the interplay of market forces of supply and demand instead of intervening to protect it.

The policy has triggered an unprecedented depreciation of the Naira from 800/dollar to 1400/dollar as of last week! That is over 75% increase in less than six months!

With the FG’s decision to stop subsidizing the dollar, the burden was shifted to the intending pilgrims to source dollars from either banks or Bureau De Change to pay for all the costs related to performing the Hajj.

But out of empathy and desire to ensure that Nigerian Muslims perform this important religious rite, NAHCON went out of it’s way to appeal to President Bola Tinubu to make some concessions for the intending pilgrims, which resulted in reducing the fare to about 6.8m Naira for those that have already registered to partake in 2024 Hajj.

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The second factor responsible for this unfortunate development is poor planing by both the State Pilgrims Welfare Boards/Agencies (SPWBs/As) and Private Hajj Operators who failed to meet the February 25th deadline for completing payment as announced by NAHCON.

If they had complied with the timeline given, there is a possibility that NAHCON would have settled the air fare, hotel, feeding and transportation charges of the pilgrims with relevant service providers before the current dollar plunge.

NAHCON must be commended for the timely intervention to secure some discounts for hotel, feeding and stay in Muna for the intending pilgrims, whose charges were cut by about $700.

With the dice already cast for this year’s. Hajj, it remains for stake holders to re-strategise and find a better way to address the nagging issue of inflation and dollar scarcity as it affects Hajj operation.

How can intending pilgrims from Nigeria be insulated from the vagaries of dollar appreciation or any other external variable?

The Way Forward is to amend the NAHCON Act 2006 to empower the Commission to operate a mico-finance bank that can receive deposits from intending pilgrims and invest in other profitable halal ventures like the Malaysian Tabung Haji.

Through this arrangement NAHCON can build solid customer base and huge deposits that can be invested offshore to generate profit for customers

The amendment will further afford the commission opportunity to explore offshore investment opportunities that will enable it withdraw and pay for services that pilgrims receive before and during Hajj operations, including air fares, hotel, Mutawwif charges etc. without recourse to the Federal Government for intervention.

In addition, the offshore investments will also provide a stream of reserves that can.be drawn upon to pay for pilgrims whose deposits are not sufficient to cover Hajj costs.

Most Importantly is the need to de-sensitize the Nigerian Muslim Ummah to understand that Hajj is obligatory only to those with means.

Secondly, the pilgrims should be oriented to perceive Hajj not only as a religious obligation, but an opportunity to trade in halal products and make profits, which could be used to purchase others goods that are in demand back home. This Way, many of our pilgrims would be able to offset the high cost of Hajj.

The SPWB/As must adapt to the new challenges by planning always a year or two ahead. Those going on pilgrimage next year, should by now have made at least 75% deposit either lump-sum or by instalments.

An intending pilgrim can start saving for Hajj five or six years earlier so that s/he will not feel the pain of lump-sum payment. That’s the essence of the Hajj Savings Scheme (HSS) launched by NAHCON about three years ago.

It’s meant to be a transition from the traditional way of lump-sum payment to a more flexible approach of depositing any amount at any given time until one is ready to make full payment.

NAHCON needs to step up advocacy and sensitisation of the public to understand the benefits of HSS so that they cancan enrol in it wholeheartedly as the easiest means to achieving their life dream of fulfilling one of the important pillars of Islam – Hajj.

The SPWB/As too need to be on the same page with NAHCON as regards using the HSS as a springboard to Hajj-Made-Easy for the Muslim Ummah in Nigeria.

Ibrahim Dan Halilu is a media consultant and public affairs analyst based in Abuja. He can be reached at 08101064449 (messages only) or email at [email protected]

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