FOREX VOLATILITY DRIVES HAJJ TICKET UP TO N4.9M

Due to fluctuations in the value of the Nigerian Naira, the ticket price for Muslim pilgrims planning to travel in 2024 has increased from the original...

The National Hajj Commission of Nigeria (NAHCON) set the cost at N4.5 million, but due to fluctuations in the value of the Naira, it has increased to N4.9 million.

There are differing opinions among the Muslim community nationwide over this abrupt development, which occurred just three days after the national Muslim pilgrims' agency set the original dateline of January 31, 2024. The majority of the intended pilgrims, who have not yet paid the entire N4.5 million fare that was previously mentioned, are also concerned about this.

NAHCON claims that “the volatile currency situation” is the reason for the new fare's pegging.

This development coincides with the appeal for subsidies by tour companies operating under the umbrella of the Association of Hajj and Umrah companies of Nigeria (AHUON).

Official FX window, the naira fell to a record low on Tuesday, trading at 1,413 against the US dollar.

A change to calculate the exchange rate was followed by a decline in the currency's value relative to the US dollar.

According to reports, the new hajj cost was previously set at N4.5 million. This makes it almost N1.6 million more expensive than it was last year.

In a statement released by the NAHCON yesterday, Fatima Sanda Usara, the organization's spokesperson, stated that individuals planning to perform the hajj in 2024 from southern states must pay N4,899,000; those from northern states, N4,699,000; and those from Yola and Maiduguri, N4,679,000.

The commission stated that the 2024 pilgrimage may have cost roughly N6 million if it had not made the bold choice to combine the gains made in bringing down the cost of services for the hajj.

The commission allowed prospective pilgrims until February 12 to complete their payments so that it could transmit the funds to the service providers prior to the Kingdom of Saudi Arabia's deadline of February 25.

The commission issued the following statement: “Recall that Malam Jalal Ahmad Arabi, the chairman of the National Hajj Commission of Nigeria (NAHCON), had originally intended to keep the 2024 Hajj fee at N4.5 million, which was charged as an initial deposit. ”Until the well-known Naira fall that happened in the middle of the week, the outlook had remained positive. Unfortunately, despite the admirable efforts of NAHCON Chairman Jalal Ahmad Arabi to keep the cost of the year's Hajj at the stated rate, the recent volatility in the dollar exchange rate necessitated a necessary modification.

“In an effort, Arabi aggressively negotiated significant reductions with service providers in the Kingdom of Saudi Arabia in late January. ”Yet, the commission had to make a swift decision to consolidate the progress made in bringing down the cost of services for the Hajj due to the unstable currency situation that emerged during the week. Otherwise, the cost of the Muslim pilgrimage in 2024 might have skyrocketed to around N6,000,000 (six million Naira).

As to go from Nigeria's southern center must pay N4,899,000; those planning to perform the Hajj from the northern center must pay N4,699,000; and those planning to perform the Hajj from Yola and Maiduguri center must pay N4,679,000.

While expressing his disappointment, Chairman Arabi said that this is Allah's will because the Commission has a short window of time—until February 25—to consider other possibilities in order to stay within the N4.5 million range for which he diligently toiled. As a result, NAHCON declares the Hajj's realistic cost in order to fulfill the approaching remittance deadline.

Therefore, in order for the commission to transfer the cash before the impending deadline, intending pilgrims are encouraged to balance their Hajj fare by Monday, February 12th.

“Despite the difficulties brought on by foreign exchange factors, NAHCON reassures the public of its commitment to ensuring a smooth and successful Hajj pilgrimage for all participants.” The statement from Ms. Usara, the Assistant Director of Public Affairs of the Commission, stated, “The Commission appreciates the understanding and cooperation of the Nigerian Muslim community during these times.”

INTENDED PILGRIMS RESPOND

After paying the N4.5 million first deposit, they would finish the payment to the N4.7 million specified by the hajj commission.

Even though he had hoped that the fare would stay the same, Hassan Abdullahi, who paid N4.5 million for his mother to make this year's pilgrimage, said he would pay the remaining N200,000. “I recently learned about the (new) hajj fares you that NAHCON had issued. Islam's central duty is the Hajj, and I'm determined that my mother, who is currently about 56 (years old), will fulfill this significant religious duty. Unlike me, this is her first time,” he remarked.

Sa'adu Na'abba also promised to pay the remaining amount before the deadline, but he made it clear that he would change his mind if the fee exceeds N5 million.