Hajj 2022: With scarce forex, jump in VAT, pilgrim may pay N2.5m each – NAHCON 

HAJJ CENTRE

Ahead of the 2022 Hajj, the Saudi authorities have allocated a quota of 43,008 pilgrims to Nigeria.

This is a shortfall when compared to 2019 when the country was allocated 65,000, with the states getting 45,450 while the tour operators got 20,000 slots. 

Chairman of the National Hajj Commission (NAHCON) Alhaji Zhikrullah Kunle Hassan disclosed this Thursday while briefing Chief Executives of State Muslim Pilgrims Welfare Boards, Agencies and Commissions in Abuja. 

He hinted that the increase in Value Added Tax (VAT) in Saudi Arabia, foreign exchange rate and others would make this year’s Hajj “very expensive”.

The major components of hajj fare include airfare, accommodation in Makkah and Madinah and the Basic Travelling Allowance (BTA) among others.

The NAHCON boss who explained that the 2022 seat allocation was based on the performance of each state in the 2019 Hajj exercise, also disclosed that “on the allocation, the States are going to have 33, 976 while the tour operators are having 9, 032.”  

He said: “We also received that the allocation to Nigeria is 43,008. We also received the information that it is best for us to conclude all arrangements with the service provider by the 15th of Shawwal, (that is 16th May, 2022).”

According to a document made available to Blueprint, the 5 States with the highest seat allocation are Kaduna – 2,491, Sokoto – 2,404, Niger – 2,256, Katsina – 2,146 and Kebbi – 2,128. 

Others are Abia – 6 slots, while Bayelsa, Akwa Ibom, Imo and Rivers had zero allocation.

Hassan who also disclosed that the Commission had received medical guidelines from Saudi Arabia, said NAHCON would release the registration guidelines soon.

He charged all intending pilgrims to register online, stressing that they have limited time and E-track (use for registration of payment) remains a necessary ingredient for Hajj operation. 

The NAHCON chairman also stated that “just by way of emphases Saudi Arabia has indicated that anybody above 65 years old must not be allowed to perform the Hajj.

“Hajj this year is going to be very expensive, this is because of at least three premises. Number one, we’re going to run the Hajj this year on N410 to $1 as against N306 to $1 in Hajj of 2019. If you look at the difference in the gap that’s about a 34% jump. Secondly, Saudi Arabia has increased their VAT from 5% to 15%. That again is a jump in cost.

“Equally very important, Saudi Arabia told us themselves that Hajj this year is going to be expensive. And for your record, Hajj is about 97 per cent determined by foreign exchange. When you compute all these, it means the cost of services will not remain the same”.

Similarly, the commission, considering the increase in VAT within Saudi Arabia, inflation, foreign exchange rate and other factors, projected that 2022 Hajj may cost N2.5 million per pilgrim. In 2019 at the N306 exchange rate to 1$, the pilgrims paid over N1.5m VAT inclusive.

Consequently, with naira at N410 to 1$, the commission projected that intending pilgrim may pay about N2.5 million considering inflation and an increase in VAT.

NAHCON Chairman also noted that “those who paid first will have their case determined first. It’s first come, first serve. Paying first is important, but paying in full is also very important.

“We’re putting all necessary structures in place and come the time for us to fly, we will fly at the scheduled time and also, all the other services will be provided.”