Hajj Forex Subsidy: CBN Defends Decision To Sell Dollar At N197 To Pilgrims

According to the CBN governor, the concessionary agreement was made with the National Pilgrim’s Commission (NAHCON) earlier this year, which was long before the current exchange rate adjustment.

Mr. Emefiele stressed that at the time of the agreement with NAHCON, the market exchange rate was still pegged at N197 to $1.

He further stated that the pilgrims had already made advanced payments for the exercise, as it would be unfair for the CBN to make them pay for the difference after they already had an initial agreement.

“In 2016 the Pilgrim Commission came to the Central Bank of Nigeria and we agreed that it had to be done at the market rate which at that time was N197, this was a decision reached sometime around March and April this year,” Emefiele said.

“So I will think that it will be inappropriate at this time because the exchange brate has sort of adjjusted that we should go back to the pilgrims and say pay the difference.

“The Central Bank of Nigeria is in business and we must respect our contracts as business people.”

It will be recalled that the Apex Bank on Thursday in a memo instructed all banks and authorised forex dealers to sell the Pilgrims Travelling Allowance, to intending pilgrims at N197 to $1.

Each pilgrim is entitled to purchase a minimum of $750.00 and maximum of US$1,000.00 as PTA.

“The Federal Government has approved that intending pilgrims are to be sold the PTA at a concessionary exchange rate of N197.00 to the US dollar,” the statement said.