Market News

by Saheed Salaw

THE Independent Hajj Reporters (IHR) has called on the Federal Government to approve a certain benchmark of dollar rates for the 2025 hajj transactions.

The organisation made the call in a statement signed by its national coordinator, Ibrahim Muhammad.

“Eighty percent of hajj transactions are dollar-based, meaning that the pilgrims will pay their hajj fare in naira and thereafter it will be converted to the dollar at the official exchange rate by the Central Bank of Nigeria (CBN) before being transferred to Saudi-based hajj service providers.

“The frequent fluctuation of the exchange rate and the unpredictable nature of forex trading have made it difficult to tabulate the hajj fare as and when desirable for pilgrims to be able to know the exact price of 2025 hajj packages,” the IHR said.

It added, “For example, the failure to peg the dollar at a fixed rate for the 2024 hajj transactions led to the reduction of pilgrims’ BTA from the 500 dollars they paid for in naira equivalent as of the time of payment to the 400 dollars they received during pilgrims airlift”.

“Secondly, the National Hajj Commission of Nigeria (NAHCON) will find it difficult to compute the exact hajj fare or compute dollar-based hajj services without specific government-approved forex rates for the 2025 hajj transactions.”

The organisation said the reduction of the BTA during Hajj 2024 inflicted untold suffering on pilgrims and pleaded with the Federal Government to approve Hajj 2025 transactions on a fixed dollar rate to allow for certainty and stability in the hajj exercise in Nigeria.

The IHR said it was aware that efforts are being made by NAHCON leadership to pay service providers (the affected services not indicated) in naira to reduce the pressure of dollars in hajj transactions.

“It must be understood that service providers who may be paid in naira will have to take their naira to the bank for conversion to the dollar before paying for their services in their country. Such transaction should be based on a specific forex rate.

“Given the current financial difficulties and the high hajj fare, we once again appeal to the Federal Government to peg the dollar to a fixed rate for Hajj 2025 transactions,” the organisation said.