NAHCON Focuses on Hajj Cost Solutions - Prof. Usman

The root cause of high cost of Hajj for Nigerian pilgrims is primarily due to the fluctuating exchange rate between the Naira and the US dollar, as well as increased service costs in Saudi Arabia, including airfare, accommodation, and transportation.

Additionally, the removal of government subsidies for Hajj has further increased the financial burden on pilgrims.

Here's a more detailed breakdown:

Naira Depreciation:
The Nigerian Naira has been experiencing significant fluctuations against the US dollar, which is the currency used for most Hajj-related transactions in Saudi Arabia.

This means that even if the cost of services in Saudi Arabia remains relatively stable in dollars, the equivalent cost in Naira increases significantly.

Dollar-Denominated Expenses:
Many essential Hajj expenses, such as air tickets, hotel accommodation, and transportation within Saudi Arabia, are denominated in US dollars. This means that Nigerian pilgrims end up paying more in Naira to cover these expenses due to the weakened Naira.

Increased Service Costs:
The cost of services in Saudi Arabia, including accommodation and transportation, can also fluctuate and generally has been on the rise.

Government Subsidy Removal:
The Nigerian government has recently ended its subsidy for Hajj, meaning pilgrims are now responsible for the full cost of the pilgrimage, including the increased exchange rate and service costs.

Other Factors:
Other factors contributing to the cost include administrative fees, transportation costs within Nigeria to departure centers, and various state-specific charges.

According to reports, the Chairman and Chief Executive Officer of the National Hajj Commission of Nigeria (NAHCON), Professor Abdullahi Saleh Usman, says the rising cost of Hajj for Nigerians is being driven by a combination of economic and regulatory pressures, including fluctuating foreign exchange rates and escalating service costs.

“These challenges have made the pilgrimage increasingly expensive for our Nigerian brothers and sisters. Therefore, developing resilient and sustainable financial models is no longer an option but a necessity to guarantee affordability, efficiency, and integrity in Hajj operations.” he said.

He stressed the urgent need to adapt Nigeria’s Hajj financing approach in response to global and local changes, noting that the commission had already taken steps toward building a more resilient framework.

According to him, NAHCON has brought in three new banking partners—Alternative Bank, TAJ Bank, and Lotus Bank—into the Hajj Savings Scheme (HSS), a move aimed at expanding access and promoting long-term planning among prospective pilgrims.

“With these banks now onboard, we are widening the reach of the Hajj Savings Scheme, promoting financial inclusion, and laying a strong foundation for a sustainable Hajj financing model,” Usman said.

He also assured stakeholders that preparations for the 2025 Hajj are on track and promised continued efficiency in service delivery.

“I assure all stakeholders that NAHCON, under my leadership, is dedicated to fostering strong partnerships, collaborations, and teamwork to ensure the success of the 2025 Hajj operations,” he said.

Sources:  HIRO Research,  NAHCON, AI Analyst, News reports,