Intending pilgrims from Nigeria pay approximately N9 billion to the Central Bank of Nigeria (CBN), the National Hajj Commission of Nigeria (NAHCON) and State Muslim Pilgrims Boards or Agencies across the 36 states and the FCT.
These payments are in the form of administrative charges and a 2 percent commission to the CBN for simply transferring pilgrims’ deposits to NAHCON’s International Bank Account Number (IBAN) in Saudi Arabia.
Although Saudi Arabian authorities allocate 95,000 slots to Nigeria, only about 55,000 on average are taken over the last four years.
Findings by HAJJ REPORTERS from the analysis of the Hajj Fare template indicate that both NAHCON and the States incorporate the sum of N5,000 as administrative charges to be paid by each intending pilgrim.
The CBN charges 2% of the dollar component of the Hajj fare which is about $90 per pilgrim.
At an average exchange rate of N1600 to a dollar used to compute the FX component of the fare, the $90 translates to about N145,000 paid by each pilgrim to the CBN, which when multiplied by 55,000 pilgrims totals N7, 975,000,000:00 each year.
This is contrary to the widely held belief that the Nigerian government is not benefiting in any way from hajj and Umrah-related activities.
By our calculations, NAHCON collects approximately N275 million each year as administrative charges.
The same amount is also collected by the 36 states and the FCT all altogether.
The Chairman of NAHCON, Prof. Abdullahi Saleh had recently appealed to the apex bank to shelve the collection of the 2% Levy to reduce the burden on intending pilgrims.
HAJJ REPORTERS checks reveal that the CBN previously charged 1 per cent for Hajj transactions before raising it to 2 per cent.
A former Director in NAHCON who spoke to HAJJ REPORTERS under the condition of anonymity said “The service charge by NAHCON and States becomes an operational necessity due to some obvious factors”
“You know that NAHCON is currently in a self-funding mode on hajj operations. The policy started during 2019 hajj operations under Barr Abdullahi Mukhtar’s led board when the commission undertook hajj operations without a single penny from the Government “
“The issue of service charge comes up during one the meetings with States and some states especially those from the south made a valid presentation saying that their governors hardly provide operational funds to them and that they rely on the service charge to carry out pre hajj operational activities,” he said.
On the 2 per cent CBN levy, the retired Director said it is an issue that needs to be discussed with the apex financial regulator.
“We cannot call for total cancellation of the CBN charges because it is a standard practice, but we can lobby for reduction to 1 per cent or even 0.5 per cent to lessen the financial burden on Nigerian pilgrims,”. He said.
