Reps uncovers financial mismanagement in 2024 Hajj operations

The House of Representatives ad hoc committee investigating the National Hajj Commission of Nigeria (NAHCON) over the 2024 Hajj exercise has found the agency guilty of several infractions, including financial mismanagement and poor service delivery.

The committee, led by Sada Soli, who represents Jibia/Kaita Federal Constituency in Katsina State, submitted its findings to the House, highlighting serious lapses and recommending urgent reforms to prevent future failures in Hajj operations.

During a plenary session on July 14, 2024, presided over by Speaker Tajudeen Abbas, the House had set up the committee to investigate NAHCON and the Federal Capital Territory Muslim Pilgrims Board following a motion by Omar Bio, the lawmaker representing Buruten/Kaima Federal Constituency of Kwara State.

In May 2024, President Bola Tinubu’s administration allocated a N90 billion subsidy for the Hajj exercise, a decision that sparked widespread criticism amid the country’s economic hardships following the removal of the fuel subsidy. Many Nigerians argued that such funds should have been used for pressing national issues rather than religious activities.

Despite the Federal Government’s financial support, several state governors expressed dissatisfaction with NAHCON’s handling of the pilgrimage, especially regarding accommodation in Mina and the insufficient Basic Travel Allowance (BTA) for pilgrims.

Amid mounting criticism, President Tinubu dismissed NAHCON Chairman Jalal Arabi in August 2024, replacing him with Abdullahi Usman. Before this, the Economic and Financial Crimes Commission (EFCC) had indicted Arabi and NAHCON Secretary Abdullahi Kontagora over an alleged multi-million-dollar fraud scheme.

The House committee, after receiving submissions from key stakeholders, including the Association for Hajj and Umrah Operators of Nigeria, uncovered several irregularities in NAHCON’s operations. A report obtained by The PUNCH revealed financial mismanagement, logistical failures, and a lack of transparency in the agency’s dealings.

The committee found that the quality of accommodation for Nigerian pilgrims, particularly in Mina and Arafat, was substandard despite the high fees paid. Many pilgrims who had paid for premium services were housed in overcrowded tents due to changes in Saudi Hajj policies that prevented upgrades on the e-track platform. This affected high-profile individuals such as governors and traditional rulers, who found themselves in uncomfortable conditions.

There was also evidence of tension between NAHCON and private tour operators, leading to a breakdown in communication and coordination. Tour operators accused the agency of unfair pricing policies, claiming discrepancies between charges for state-sponsored pilgrims and those using private operators. They also lamented their exclusion from major policy decisions, which further strained their relationship with NAHCON.

The committee raised concerns about NAHCON’s financial management, revealing that pilgrims were charged up to N9 million each, yet there was no clear breakdown of the costs. The N90 billion federal subsidy was also not equitably distributed, with some pilgrims benefiting more than others without a clear explanation. Allegations of financial mismanagement led to the dismissal of the NAHCON chairman, as reports indicated that the entire subsidy amount was transferred to offshore accounts in Saudi Arabia without proper tracking of expenditures.

Another issue highlighted in the report was Nigeria’s Bilateral Air Agreement with Saudi Arabia, which requires that 50% of Nigerian pilgrims be airlifted by Saudi airlines. The committee argued that this arrangement was unfair to Nigerian airlines, limiting their participation and affecting the local aviation sector. It recommended that the Nigerian Civil Aviation Authority and the Aviation Ministry review the terms to ensure better opportunities for domestic carriers.

Further findings exposed inconsistencies in service delivery across different states, with some pilgrims experiencing better treatment than others. Poor coordination between NAHCON and state pilgrims’ welfare boards resulted in varying levels of service quality. Many pilgrims endured overcrowded accommodations in Medina and Mina, while transportation arrangements between Makkah, Mina, and Jeddah were chaotic, forcing elderly pilgrims to walk long distances. Some even found themselves stranded due to poor bus coordination.

Additionally, the committee discovered that the FCT Muslim Pilgrims Welfare Board had mismanaged funds, exceeding its budget for staff delegations. While only 20 officials were budgeted for the trip, 54 were sent, leading to unpaid allowances and financial strain.

The Central Bank of Nigeria (CBN) was also scrutinized for its handling of the Personal Travel Allowance (PTA) for pilgrims. Due to fluctuating exchange rates between May 15 and May 30, 2024, and resistance from pilgrims towards electronic card payments, the CBN approved 100% cash disbursement, creating additional pressure on commercial banks. The committee suggested that NAHCON submit a full list of intending pilgrims at least 30 days before departure to ensure timely processing of payments.

To prevent a repeat of these issues, the committee recommended the publication of a transparent breakdown of Hajj fees and a review of the PTA system to ensure fair disbursement. An independent audit of NAHCON’s financial records was also suggested to uncover and address mismanagement. The report further proposed stricter penalties for service providers who failed to meet their contractual obligations and the establishment of an independent complaints resolution body for pilgrims.

A major concern was the lack of transparency in how the subsidy funds were used. According to NAHCON, N79 billion was allocated to 48,414 state pilgrims, while N7 billion went to 1,884 pilgrims under the Hajj Savings Scheme (HSS). However, the commission could not fully account for an outstanding N4 billion. Officials claimed the funds were used to sponsor 1,000 personnel for the Hajj exercise, but they failed to provide verifiable records to support this claim.

Moreover, there was no structured refund mechanism for surplus funds, leaving many pilgrims who received downgraded accommodations without any form of compensation. Some service providers reportedly refunded money to NAHCON, but there was no evidence that these refunds reached the affected pilgrims, raising further questions about the agency’s financial accountability.

Despite these findings, NAHCON’s spokesperson, Fatima Usara, denied knowledge of any indictment. Speaking in an interview with The PUNCH, she stated, “What I read on the pages of newspapers are resolutions and recommendations for further action. Personally, I am yet to see the full report, so I cannot ascertain your claims.

“However, NAHCON has always reiterated its readiness to continue working on improving Hajj operations for Nigerian pilgrims and will continue to work closely with relevant stakeholders interested in improving the welfare of Nigerian pilgrims.”

The recommendations from the committee, if implemented, could bring significant reforms to Hajj operations in Nigeria. However, whether these proposals will lead to meaningful change remains to be seen.