REPS INDICT HAJJ COMMISSION OVER N90BN SUBSIDY MISMANAGEMENT

The House of Representatives ad hoc committee investigating the National Hajj Commission of Nigeria (NAHCON) over the 2024 Hajj exercise has uncovered multiple infractions by the commission.

Chaired by Sada Soli, who represents the Jibia/Kaita Federal Constituency in Katsina State, the committee has submitted its report, detailing its findings and recommending reforms to prevent similar issues in future Hajj operations.

During a plenary session on July 14, 2024, presided over by Speaker Tajudeen Abbas, the House established the ad hoc committee to probe NAHCON and the Federal Capital Territory Administration Muslim Pilgrims Board, following a motion sponsored by Mr. Omar Bio, representing the Buruten/Kaima Federal Constituency in Kwara State.

In May 2024, the Bola Tinubu-led government allocated a ₦90 billion subsidy for the Hajj exercise.

This decision stirred discontent among many Nigerians, especially amid the economic hardships worsened by the fuel subsidy removal.

Critics contended that the ₦90 billion subsidy should have been allocated to more pressing national concerns rather than a religious pilgrimage.

Despite the federal government’s intervention, state governors voiced dissatisfaction with NAHCON’s management of the Hajj exercise, particularly regarding accommodation in Muna and the insufficient Basic Travel Allowance for pilgrims.

In response to mounting criticism, President Bola Tinubu dismissed NAHCON Chairman Jalal Arabi in August 2024, appointing Abdullahi Usman as his replacement.

Before his removal, the Economic and Financial Crimes Commission (EFCC) had indicted Arabi and NAHCON’s Secretary, Abdullahi Kontagora, over their alleged involvement in a multi-million-dollar fraud scheme.

The House of Representatives ad hoc committee gathered testimonies from key Hajj stakeholders, including the Association for Hajj and Umrah Operators of Nigeria, which represents licensed private tour operators. These stakeholders detailed severe challenges in their dealings with NAHCON.

A copy of the committee’s report, exclusively obtained by us, exposed multiple infractions, including financial mismanagement, logistical failures, and a lack of transparency.

Among the most alarming findings was the poor quality of accommodation provided to Nigerian pilgrims, particularly in Mina and Arafat, where tent allocations were inadequate despite the high fees paid.

The overcrowding of VIP Tent A was worsened by a change in Saudi Hajj policy, which barred upgrades on the e-track platform. This caused discomfort and frustration among high-profile pilgrims, including governors and traditional rulers.

Additionally, many pilgrims who had paid premium rates were placed in substandard facilities, leading to widespread dissatisfaction and disputes.

The investigation also revealed a breakdown in relations between NAHCON and licensed tour operators, characterized by poor communication and mutual distrust.

Tour operators raised concerns over inconsistencies in NAHCON’s fee structure, particularly the disparity in charges imposed on private operators versus state-sponsored pilgrims.

The exclusion of tour operators from key policy decisions further strained relations and hindered coordination, leading to service failures that directly affected pilgrims.

The committee also flagged serious financial concerns, noting that pilgrims paid up to ₦9 million each without a clear breakdown of costs or justification for the high fees.

Furthermore, the distribution of the ₦90 billion federal subsidy lacked transparency, with some pilgrims receiving more benefits than others without a clear selection criterion.

There were allegations of financial mismanagement within NAHCON, which contributed to the dismissal of its chairman over fraud-related concerns.

Additionally, NAHCON transferred the entire subsidy amount into its offshore accounts in Saudi Arabia, but there was no tracking mechanism to verify how these funds were spent.

The committee also examined Nigeria’s Bilateral Air Agreement with Saudi Arabia, which mandates that a Saudi airline airlift 50% of Nigerian pilgrims.

This arrangement was seen as potentially disadvantageous to Nigerian airlines, limiting their participation and affecting the local aviation industry.

The committee recommended that the Nigerian Civil Aviation Authority and the Aviation Ministry clarify the terms of this agreement to protect Nigerian airlines’ interests.

The report also highlighted significant gaps in NAHCON’s regulatory oversight, citing a lack of uniform service delivery across different states.

Coordination failures between NAHCON and state pilgrims’ welfare boards resulted in varying levels of service quality for pilgrims from different states.

Accommodation arrangements posed a major challenge, with pilgrims facing overcrowding and poor living conditions in Medina and Mina.

Transportation logistics were another area of failure, with delays in movement between Makkah, Mina, and Jeddah causing severe distress to pilgrims.

Elderly pilgrims were forced to walk long distances due to poor coordination of buses, while others were left stranded at checkpoints. Financial mismanagement within the FCT Muslim Pilgrims Welfare Board was also exposed, particularly overspending on staff delegation.

Although only 20 officials were budgeted for, 54 were sent on Hajj, leading to unpaid estacodes and additional financial strain.

The report also examined the role of the Central Bank of Nigeria in handling the Personal Travel Allowance for pilgrims.

The CBN highlighted the challenges posed by fluctuating exchange rates between May 15 and May 30, 2024, and the resistance among pilgrims to electronic card payments.

As a result, the CBN approved 100% cash disbursement, increasing operational pressure on commercial banks.

The committee noted that the CBN recommended NAHCON submit the full list of intending pilgrims at least 30 working days before departure to allow banks sufficient time to process payments and avoid last-minute pressures.

To prevent a repeat of the 2024 issues, the committee recommended publishing a detailed breakdown of Hajj fees, justifying each charge.

The Personal Travel Allowance system should be reviewed to ensure fair and adequate disbursement to pilgrims, with an upward review of the $500 PTA to a more reasonable amount.

An independent audit of NAHCON’s financial records should be conducted to identify and address financial mismanagement.

Stricter penalties for service providers who fail to meet their contractual obligations were also suggested.

Furthermore, the committee recommended a review of the Bilateral Air Agreement to protect Nigerian airlines’ interests and the creation of an independent complaints resolution mechanism for pilgrims.

The committee also proposed the establishment of a Hajj Tribunal to resolve disputes promptly.

The breakdown of the subsidy expenditure lacked proper transparency, with NAHCON officials providing conflicting figures during the investigation. According to NAHCON, N79bn was allocated to 48,414 state pilgrims, while N7bn was given to 1,884 Hajj Savings Scheme (HSS) pilgrims.

However, there was an unaccounted balance of N4bn, which NAHCON failed to properly explain. The commission claimed to have used the funds to sponsor one thousand officials to the hajj; it was however unable to provide verifiable records of these officials to authenticate this position. This raised serious red flags about whether the full subsidy was utilized for its intended purpose or if portions were mismanaged.

The committee also found that NAHCON transferred the entire subsidy amount into its offshore accounts in Saudi Arabia, but there was no clear tracking mechanism for how these funds were spent.

This lack of accountability made it difficult to verify whether the funds were used strictly for subsidy purposes or diverted for other expenses. Furthermore, there were inconsistencies in how much each pilgrim actually benefited from the subsidy, with reports suggesting that some pilgrims received little or no reduction in their total Hajj fees.

Another critical issue was the absence of a structured refund mechanism for surplus funds. Some state pilgrims were downgraded in accommodation or received lower-quality services than promised, yet there was no evidence that excess funds were refunded to them.

Additionally, the committee discovered that some service providers had refunded certain amounts to NAHCON, but there was no clear record of these refunds reaching the affected pilgrims. This raised further questions about the handling of surplus funds and the overall accountability of NAHCON’s financial operations.

Meanwhile, the spokesperson for the National Hajj Commission of Nigeria, Fatima Usara, has pledged the readiness of the agency to continuously seek ways to improve on Hajj operations for intending pilgrims.

In an interview, Fatima denied knowledge of NAHCON’s indictment, saying,  “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.”