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End of Subsidy: Hajj Fare to Skyrocket to ₦10m, NAHCON Announces

The National Hajj Commission of Nigeria (NAHCON) has announced that the federal government will discontinue its subsidy for the Hajj pilgrimage starting in 2025. Traditionally, the government had provided a concessionary exchange rate for pilgrims, allowing them to purchase dollars at a reduced rate through the Central Bank of Nigeria (CBN).

NAHCON’s spokesperson, Fatima Sanda Usara, confirmed in a statement that the 2025 Hajj fare will no longer benefit from this concession. “There will be no concessionary exchange rate from the government for Hajj fare payment for pilgrims, whether under state or private Hajj operators,” Usara said.

Given the current exchange rate of ₦1,650 per dollar, this change is expected to drive up the cost of the pilgrimage to almost ₦10 million, as pilgrims typically need at least $6,000 for their expenses.

While the official 2025 Hajj fare has yet to be announced, State Pilgrims Welfare Boards are already requesting intending pilgrims to make an initial deposit of ₦8.5 million in anticipation of the final figure.

NAHCON also revealed that each Nigerian pilgrim who participated in the 2023 Hajj will receive a refund of 64,682 naira (equivalent to 150 Saudi Riyal). These developments were disclosed during an interactive session between NAHCON and members of the Private Tour Operators (PTOs) in Nigeria.

The meeting, held on October 7, 2024, was led by Prince Anofi Olanrewaju Elegushi, NAHCON’s Commissioner of Operations. He provided updates on recent resolutions, including those reached after the return of Acting Chairman, Prof. Abdullahi Sale Pakistan, who had been on a brief trip.

During the virtual meeting, Elegushi also mentioned that Saudi Arabia had reduced the number of approved PTOs for the Hajj from 20 to 10. To be considered for a Hajj visa, each company must now register a minimum of 2,000 pilgrims.

Additionally, Elegushi shared updates on refunds related to the 2022 Hajj. While further details are still awaited, he noted that PTOs operating in Field Office 18 during the 2022 Hajj are expected to receive a collective refund of SR62,602 (₦26,993,224) for substandard feeding in the Masha’ir region.

Regarding the 2025 Hajj, NAHCON’s executive committee has approved the option for PTOs to provide a bank guarantee as an alternative to the ₦40 million caution deposit. Operators who have already made a cash deposit can request a refund to take advantage of this new arrangement.

Lastly, Elegushi clarified that NAHCON does not owe PTOs ₦17 billion from the 2024 Hajj caution deposits. He explained that the commission received ₦2.75 billion from 110 registered companies, which included a rollover of ₦1.25 billion from the previous year. Of this amount, ₦750 million has already been refunded to 30 companies, while the remaining ₦750 million is still held by NAHCON for undecided PTOs.