allAfrica.com: Nigeria: Withdrawal of Concession Will Not Increase Hajj Fares

Nigeria: Withdrawal of Concession Will Not Increase Hajj Fares - Hajj Commission Boss

Mohammed Musa Bello, Chairman of the National Hajj Commission of Nigeria (NAHCON)in this interview, allayed fears that the withdrawal of subsidy which he termed as exchange rate concession earlier enjoyed by the pilgrims to the holy land will not raise hajj fares. He said even if there would be increment, it would not be connected with the withdrawal but other market forces, among other issues. Excerpts:

Weekly Trust: What is the level of preparation for this year's hajj?

Mohammed Musa Bello: For this year's hajj, we have commenced preparations. We started with a meeting of secretaries and chairmen of states pilgrims' welfare board to finetune our preparations for the exercise. We have reached a point where we have received applications from all the states in respect to the number of seats they want for their pilgrims. We have reached a consensus with the state chairmen on some key policy issues regarding this year's hajj and we have also reviewed our last year's performance so that we can improve on it. We are also going to Saudi Arabia for a meeting with their Ministry of Hajj Affairs where a memorandum of understanding for the 2008 Hajj will be signed and we have commenced discussions with the immigration services too.

WT: There are complaints from stakeholders that preparations started late. How will you react to that?

Bello: No, I don't think so. We are now in April and Arafat is going to be between December 6 and 7. So, we have about seven months before the commencement of Hajj. So, I believe we are on track.

WT: Before the withdrawal of subsidy, how much was the Federal Government spending on pilgrims annually?

Bello: The subsidy on hajj is something which the general public is worried about and to a large extent, it is due to inadequate or wrong information, which I will like to clarify. Basically, the subsidy in the past in respect of hajj refers to the provision of concessional rates of exchange for hajj transactions, that is the rate at which it cost hajj transactions of exchange rate between the United States dollar and the naira, so the fact that the Federal Government has said no more concessional rate to be used doesn't mean there will be problems. In fact, the rate was so meagre and les was meaningful to affect the hajj operations. The subsidy was a kind of palliative measure to bridge the gap created by the official exchange rate and the black market, but now you find out that there is some kind of convergence between the open market rate and the official rate, the way we look at it, the rate is not much of a problem. In terms of how much it is, it is difficult to quantify in the sense that there was a time the differential in rate was almost $8 per dollar but now, when you look at the official rate and the differential rate, you are talking of only $2 or $3. But in terms of Federal Government's support for hajj, it will always continue as before. The government will continue to provide support in medical services to the pilgrims, consular services to the pilgrims and also security. All the airports from where the pilgrims depart from Nigeria are owned and managed by the Federal Government and in that respect, there is indirect support so when we talk of Federal Government support and subsidies, we should look at it in that context. It is not like subsidies we hear in agriculture, petroleum, fertilizer etc.

WT: How confident is the Commission that the removal will not affect the operation this year since you said it is meagre?

Bello: It has nothing to do with hajj operations whatsoever. For your information, foreign exchange rate was removed as far back as 2006, before this administration came on board. Last year, when the exchange rate approved for hajj transaction was N120 to a dollar, the real market rate that was eventually used was N117 to a dollar, which the official rate was lower than concessional rate. So, there was no concession last year and things went on fine so why the fear this year?

WT: I am referring to a backup in case of any unforeseen problem?

Bello: Subsidy is the rate at which you make your transaction, so it does not require any backup arrangement. It is just the rate which you make your transaction and the convergence is no longer an issue. So, people going for hajj will continue to pay hajj fares according to how they have planned. Then if other services go up like accommodation and others, then it will be reflected in the price. So any increase in hajj fares is not because of subsidy, because it is no longer relevant because of the rate convergence between official rate and the black market rate. That is why the commission is trying to enlighten the public and prospective pilgrims.

WT: With this development what happens to the Basic Travel Allowance (BTA), ticket and accommodation?

Bello: I think we need to clarify this very clearly. There has never been any subsidy on accommodation, air fare and accommodation in Medina every facility of hajj has always been paid for by pilgrims. Some people talk in respect of subsidy to give the impression that the government has been over the years giving special concession to the Muslims. I can tell you, if you really translate these concessions, they are nothing to write home about. So it is not an issue at all in NAHCON and that is what we are trying to enlighten the public about.

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