Previously, the subsidy allowed pilgrims to access U.S. dollars at a reduced rate, easing the financial burden of the pilgrimage.
The National Hajj Commission of Nigeria (NAHCON) has announced that the President Bola Tinubu-led federal government will no longer subsidise hajj payments for pilgrims starting in 2025, marking the end of the long-standing concessionary exchange rate offered by the Central Bank of Nigeria (CBN).
This development is expected to drive hajj fares up significantly, potentially reaching N10 million per pilgrim.
Previously, the subsidy allowed pilgrims to access U.S. dollars at a reduced rate, easing the financial burden of the pilgrimage.
However, with the naira currently valued at N1,650 to a dollar and the standard hajj fare at approximately $6,000, the cost for each pilgrim could rise to N10 million if the exchange rate holds.
In a statement released by NAHCON spokesperson Fatima Sanda Usara, the commission confirmed that for the 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.”
While NAHCON has yet to announce the official hajj fare for 2025, several state pilgrim welfare boards have already begun advising intending pilgrims to make initial deposits of N8.5 million in anticipation of the price increase.
Meanwhile, NAHCON has also announced a refund of 64,682 Nigerian pilgrims who participated in the 2023 hajj, amounting to 150 Saudi Riyal each. This revelation was made during a virtual meeting between NAHCON and the Private Tour Operators (PTOs), chaired by NAHCON’s Commissioner of Operations, Prince Anofi Olanrewaju Elegushi.
In further developments, Saudi Arabia’s Ministry of Hajj and Umrah has reduced the number of approved PTOs from 20 to 10, and each company is now required to register a minimum of 2,000 pilgrims to secure hajj visas.
The Commissioner of Operations informed PTO members that NAHCON’s Executive Council has approved the option of using a bank guarantee to fulfill the N40 million caution deposit requirement for the 2025 Hajj.
Operators who have already made a cash deposit but prefer to use a bank guarantee are invited to request a refund of their earlier cash deposit and submit the bank guarantee instead.
He further clarified that contrary to claims that NAHCON owes PTOs N17 billion from the N25 million caution deposit for the 2024 Hajj, the commission only received N2.75 billion from 110 companies that registered for the 2024 Hajj.
This amount included a rollover of N1.25 billion from the previous year. Of this, 30 companies requested refunds totaling N750 million, which has already been paid.
However, the remaining N750 million is still held by the commission for undecided PTOs.
