Nigeria is facing unprecedented economic hardship that has left millions of its citizens struggling to make ends meet as a result of the partial removal of fuel subsidies, and national currency in free-fall
Nigeria’s anti-graft agency, the Economic and Financial Crimes Commission (EFCC) has detained Executive Chairman of the National Hajj Commission of Nigeria, Jalal Arabi, and the secretary, Abdullahi Kontagora, over alleged ₦90 billion hajj subsidy fraud.
Before the exercise, President Bola Tinubu had approved N90 billion for the commission to subsidize the hajj cost of the islamic pilgrims.
But the EFCC began inviting top officials of the Hajj Commission for questioning over alleged mismanagement of the funds.
A total of SR314,098 was recovered from the NAHCON chairman and other officials, according to a document from the anti-graft agency.
EFCC stressed that its investigation revealed that from the ₦90 billion released for Hajj subsidy, Arabi, fraudulently overpaid himself and others the necessary operational cost.
Also according to the document, the approved 2024 Hajj operational cost for the Chairman/CEO Commissioners, Secretary and Directors/Chief of Staff in the 2024 budget are stipulated as $4,250, $12,750, $3,825 and $15,300, respectively.
“The chairman fraudulently overpaid himself, the commissioners, secretary and directors for the 2024 hajj operational cost,” the document said.
“The chairman was entitled to SR15,929 but he got SR50,000; three commissioners who were meant to get SR 15,929 each received SR 40,000 each. The secretary got SR 30,000 instead of SR14,336. Directors/Chief of Staff received SR 30,000 instead of the SR2,550 they were entitled to. The total of SR314,098 were recovered from all of them.”
Another document revealed that the sum of SR8,614,175.27 cash withdrawal out of the N90 billion released by the Federal Government to the commission is yet to be accounted for by NAHCON.
“The sum of N90bn was released by the Federal Government of Nigeria to the National Hajj Commission to subsidise the 2024 Hajj Operations by the Federal Government of Nigeria,” the document stated.
“The total sum of N1, 764,705,937.62 was deducted by the Central Bank of Nigeria as bank charges.
“The sum of N88, 235,294,063.72 was subsequently converted into United States dollars at the rate of N1,416.13, which amounted to USD 62,307,164.48 and thereafter transferred into NAHCON British SAAB Account in Saudi Arabia.
“The sum of USD 62,307,164.48 was converted to Saudi Riyal at the rate of N3,748, which amounted to the sum of SR 233,527,252.47.
“That the opening balance of the IBAN-E track for 2024 Hajj activities was SR 19,813,810.89 and has an inflow of SR 485,000,000.00 from NAHCON with a closing balance of SR 78,985,266.03.
“That the closing balance is inclusive of the SR20,637,908.23 refunded from the Ministry of Hajj and Umrah Saudi Arabia.
“That the total sum of SR 22, 815,367.74 was withdrawn cash from the British SAAB account by one Abubakar Muhammed Lamin in Saudi Arabia during the 2024 Hajj operation.
“The expected cash payment for services and allowances to staff and stakeholders is SR 14,905,910.47.
“That the total sum of SR 8,614,175.27 cash withdrawal is yet to be accounted for by NAHCON.”
President Bola Tinubu’s decision to subsidise the 2024 Hajj with a whopping N90 billion had raised crucial questions about the government’s priorities.
It raised serious questions about fiscal responsibility.
It left Tinubu’s petrol “subsidy is gone” mantra in tatters. The decision was nothing but politics.
It is baffling that the Federal Government doled out this humongous amount when Nigerians are struggling against the economic headwinds occasioned by the withdrawal of the petrol subsidy, the high cost of living, and the increase in power tariff.
Nigeria is facing its worst economic crisis in decades, with skyrocketing inflation, a national currency in free-fall and millions of people struggling to buy food. Only two years ago Africa’s biggest economy, Nigeria is projected to drop to fourth place this year.
The pain is widespread. Unions strike to protest salaries of around $20 a month. People die in stampedes, desperate for free sacks of rice. Hospitals are overrun with women wracked by spasms from calcium deficiencies.
Although President Bola Tinubu increased the minimum wage — after strike action and months-long negotiations with labour unions — from N30,000 to N70,000, his government has increased spending for officials at a time of nationwide starvation.
For workers earning the new N70,000, or $43, per month minimum wage, capricious inflation and naira value have inflicted too much damage for the changes to make any difference in their lives.
The crisis is largely believed to be rooted in two major changes implemented by Mr Tinubu, elected 14 months ago: the partial removal of fuel subsidies and the floating of the currency, which together have caused major price rises.
Last week, Amnesty International accused Nigerian security forces of killing at least 21 protesters during a week of economic hardship protests.
Police and other security agencies clamped down on protests after thousands of people joined rallies against government policies and the high cost of living from August 1st to 10th.
Security forces denied responsibility for deaths during the protests.
Over 40 per cent of Nigerians live below the poverty line. About 53.40 per cent of youths are unemployed, per the National Bureau of Statistics in 2022.
The healthcare system is underfunded, with insufficient facilities and a shortage of professionals.
The education sector suffers from shabby infrastructure and unqualified teachers, contributing to high dropout rates and poor outcomes. In such a context, dedicating a massive sum to a religious activity for a specific group seems misaligned with broader national needs.
The subsidy reflects the government’s gross insensitivity to the prevailing mass hunger, rising poverty, and wanton underdevelopment afflicting the different sectors in the country. A 2022 UNESCO report noted that 20.1 million children are not in school.
A nation of entrepreneurs, Nigeria’s more than 200 million citizens are skilled at managing in tough circumstances, without the services states usually provide. They generate their own electricity and source their own water. They take up arms and defend their communities when the armed forces cannot. They negotiate with armed kidnappers when family members are abducted.
But right now, their resourcefulness is being stretched to the limit.