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Home » Approve forex benchmark for Hajj Transactions, CSO urges FG
Hajj News

Approve forex benchmark for Hajj Transactions, CSO urges FG

adminBy adminDecember 29, 2024No Comments3 Mins Read
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Independent Hajj Reporters (IHR), a Civil Society Organization that monitors, reports on, and advocates workable policies for the Hajj and Umrah Industry in Nigeria has called on the Federal Government to approve a certain benchmark of dollar rates for the 2025 Hajj transactions.

 

 

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

 

“80 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 service providers for hajj services.

 

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

 

The CSO also said, “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 at the time of payment to the 400 dollars they received during pilgrims airlift”.

 

Secondly, 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 statement added

 

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

 

IHR said it is aware that efforts are being made by the National Hajj Commission of Nigeria (NAHCON) leadership to pay service providers (though without details as to which services) 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 rise in the cost of hajj fare, we once again appeal to the Federal Government to peg the dollar to a fixed rate for hajj 2025 transactions,” IHR said

 

E-Sign

Ibrahim Muhammad

For: Independent Hajj Reporters

29th December, 2024

FG Forex IHR
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