The National Hajj Commission of Nigeria (NAHCON) has announced a significant policy shift, stating that the federal government, led by President Bola Tinubu, will cease subsidizing hajj payments for pilgrims starting in 2025. This decision marks the end of the long-standing concessionary exchange rate previously provided by the Central Bank of Nigeria (CBN), which has historically eased the financial burden of the pilgrimage for many Nigerians.
With this change, hajj fares are projected to increase dramatically, potentially reaching as high as N10 million per pilgrim. The subsidy allowed pilgrims to purchase U.S. dollars at a reduced rate, significantly lowering the costs associated with the pilgrimage. However, as the naira currently trades at approximately N1,650 to the dollar and the standard hajj fare hovers around $6,000, the elimination of the subsidy means that the financial implications for pilgrims could be substantial.
In a statement from NAHCON spokesperson Fatima Sanda Usara, the commission confirmed that for the upcoming 2025 hajj, “There will be no concessionary exchange rate from the government for Hajj fare payment for pilgrims, whether under state or private Hajj operators.” Although NAHCON has not yet released the official hajj fare for 2025, several state pilgrim welfare boards have begun advising prospective pilgrims to make initial deposits of N8.5 million in anticipation of the impending price increase.
In addition to the fare changes, NAHCON has announced a refund for 64,682 Nigerian pilgrims who participated in the 2023 hajj, amounting to 150 Saudi Riyals each. This announcement was made during a virtual meeting between NAHCON and Private Tour Operators (PTOs), chaired by NAHCON’s Commissioner of Operations, Prince Anofi Olanrewaju Elegushi.
Further complicating the hajj landscape, Saudi Arabia’s Ministry of Hajj and Umrah has reduced the number of approved PTOs from 20 to 10. Each remaining company is now required to register a minimum of 2,000 pilgrims to secure hajj visas, raising the stakes for tour operators.
To ease the financial requirements, the Commissioner of Operations informed PTO members that NAHCON’s Executive Council has approved an option for operators to use a bank guarantee to fulfill the N40 million caution deposit requirement for the 2025 Hajj. Operators who previously made cash deposits but prefer the bank guarantee option are encouraged to request refunds for their earlier cash deposits and submit the bank guarantee instead.
Amid these changes, there have been claims regarding NAHCON owing PTOs N17 billion from the N25 million caution deposit for the 2024 Hajj. However, the commission clarified that it received only N2.75 billion from 110 companies registered for the 2024 Hajj, which included a rollover of N1.25 billion from the previous year. Of this amount, 30 companies requested refunds totaling N750 million, which have already been processed, leaving the remaining N750 million still held by the commission for undecided PTOs.
As the 2025 Hajj approaches, these developments will undoubtedly reshape the pilgrimage experience for many Nigerians, prompting both prospective pilgrims and tour operators to reassess their plans and financial commitments.