Hajj management in Nigeria is facing two main problems. Firstly, funding is tied to the dollar; once there is a fluctuation in the value of the dollar against the naira, the hajj fare in Nigeria becomes uncertain. This is currently happening. The second problem relates to flight schedules to and from Saudi Arabia, etc. These problems are two-fold, and should be collectively tackled by both the National Hajj Commission of Nigeria (NAHCON) and state Hajj commissions.
The solution to these problems could be as follows:
Firstly, the Nigerian hajj fare should be tied to or pegged to the Saudi Riyal. The Riyal is stable due to the country’s strong economic fundamentals and prudent financial management. Additionally, apart from pegging the Nigerian hajj fare to the Saudi Riyal, the National Hajj Commission of Nigeria should study the Malaysian hajj management model.
In Malaysia, the Hajj has a funding management system called the Tabung Haji. Research on the Malaysian system of hajj management indicates that it involves several components. The Tabung Haji (Pilgrims’ Fund Board) plays a crucial role in managing the financial aspects of Hajj for Malaysian pilgrims.
Malaysian Muslims intending to perform Hajj must make regular contributions to Tabung Haji. These contributions accumulate over time and cover expenses such as transportation, accommodation, and other logistical needs associated with Hajj. NAHCON also implements a similar savings scheme, albeit with limited success. It’s time for NAHCON to redesign the Hajj Savings Scheme in collaboration with banks and other financial institutions, particularly those offering Islamic banking services. The new scheme should allow intending pilgrims to enter into an investment plan for more than one year. As pilgrims deposit funds into their accounts, the bank or financial institution would invest the money for a period ranging from two to several years. By the end of this period, pilgrims would have accrued enough funds for the Hajj fare, along with additional profits. This approach would streamline the process for both pilgrims and commissions, providing ample time for planning.
Taking a clue from the Malaysian Tabung Haji, it manages its funds through various Shariah-compliant investment instruments, such as equities, real estate, and sukuk (Islamic bonds). The returns from these investments sustain Tabung Haji’s operations and cover the costs of Hajj for Malaysian pilgrims.
In addition, the Malaysian Tabung Haji has achieved remarkable success by offering diverse Hajj packages customised to meet the needs and preferences of Malaysian pilgrims. These packages encompass a range of services, including luxury accommodation in Makkah and Madinah, transportation, meals, and guidance.
Moreover, Tabung Haji extends financial assistance to eligible Malaysian pilgrims who may require support to undertake the Hajj journey. This assistance may comprise subsidies for Hajj expenses or loans to cover pilgrimage costs, which can be repaid in installments.
The National Hajj Commission has demonstrated commendable efforts over its three decades of existence. However, the current instability in the exchange rate between the dollar and the naira underscores the need for the commission to consider pegging the hajj fare to the stable Saudi Riyal. Additionally, NAHCON should revamp the Hajj Savings Scheme to offer long-term, Halal investment options for intending pilgrims. This approach would contribute to a more organised and financially sustainable hajj management system.
To achieve these goals, NAHCON should establish a diverse team comprising individuals from various sectors to assist in redesigning the Hajj Management System, particularly the pilgrim savings scheme.
Zayyad I. Muhammad, Abuja
