IHR urges CBN to stop charging 2% on Hajj payments to help reduce the cost for pilgrims

By Sadiq Abdulfatah

The Independent Hajj Reporters (IHR), a faith-based civil society organisation, has called on the Central Bank of Nigeria (CBN) to remove the 2% service charge it collects from payments made by intending Nigerian pilgrims for the Hajj.

In a statement signed by its National Coordinator, Ibrahim Muhammad, “the 2% charge, which amounts to $90 per pilgrim (about N144,000) based on the N1,600 exchange rate used by the National Hajj Commission of Nigeria (NAHCON), is one of the factors increasing the cost of Hajj for Nigerians.

According to IHR, with Saudi Arabia’s allocation of 95,000 Hajj slots to Nigeria, the CBN could make about N13.68 billion annually from the charge.

The statement read, “Saudi Arabia allocates 95,000 slots to Nigeria for the annual pilgrimage. If the quota is filled, the CBN generates approximately $8,550,000 (N13.68 billion) in revenue yearly from Hajj payments by pilgrims.”

It added that following the public outcry over the rising cost of Hajj, “The CBN should abolish the revenue it collects simply for transferring Hajj payments to NAHCON’s IBAN account in Saudi Arabia.”

While acknowledging that the service charge is not illegal, the group said it believes the CBN could waive it to help reduce Hajj costs, as pilgrims already pay several fees to different government agencies.

“While we do not claim that the payments are illegal, we believe that the CBN can waive them as their contribution to the reduction of Hajj fare in the country. Nigerian pilgrims are paying multiple service charges to various government establishments, which has jerked up the overall cost of the Hajj fare,” the group stated.

It noted that since 2019, NAHCON has been funding its operations through its service charges, without government support, and urged other public institutions to help make the process easier for pilgrims.

The CSO said its appeal followed similar calls from other Hajj stakeholders asking the CBN to scrap the payments.

Source: Tribune