Opinion
On Defending 2023 Hajj Anomalies
By ‘Yinka Raheem
After several appeals by some respected stakeholders in the Nigerian hajj industry, I had decided to turn a blind eye to the confusion and controversies that trailed the 2023 hajj – right from its nascent stage of exorbitant fares, arbitrary deduction of pilgrims BTA, commencement of inaugural flight with rescue operation, pilgrims protests in Lagos, non-payment of airlines, poor feeding and rickety accommodation in Makkah and Madinah, the unprecedented eyesore in Mina and Arafat services, discarding ‘first-in, first-out policy’ leading to pilgrims spending over 45 days in Saudi Arabia, among others.
However, I am constrained to intervene now because of some obvious calculated mischief being executed through a failed and amateurish attempt to defend the indefensible and give a dog a bad name in order to hang it.
My attention was drawn to an article authored by one Abdulfatah Abdulsalam, entitled: “Hajj Airlift: The lies of a journalist,” published in some social media platforms. The author claims to be an ‘editor’ of a faith-based blog/magazine. The author painstakingly tried to attack one of Nigeria’s reputable newspapers – Daily Nigerian – for publishing an exclusive story: “2023 Hajj: NAHCON yet to pay airlines weeks after conclusion of airlift” published on August 17, 2023. The story was authored by one of the newspaper’s prolific editors, Ibrahim Ramalan.
Mr Abdulsalam – embellishing praise singing and barefaced lies with some religious garbs – laboriously tried to discredit the story, but woefully failed due to one single reason: the story is a fact and nothing but a fact. This is evident because two weeks after the story, NAHCON didn’t come out to deny that it had violated the 2023 airlift agreement it signed with hajj carriers by not paying them as scheduled.
The mercenary author didn’t dispute the fact that the National Hajj Commission of Nigeria (NAHCON) has not yet paid the airlines that airlifted Nigerian pilgrims to Saudi Arabia for the 2023 Hajj, four weeks after the end of the 2023 holy pilgrimage. This is an undeniable fact.
None of the five airlines — Max Air, Flynas, Air Peace, Aero Contractors and Azman Air — contracted by NAHCON to airlift 75,000 state pilgrims to 2023 hajj has come out to say they have been paid on schedule as agreed in the airlift MoU.
It is a fact that the airlines have completed inbound airlift on 31 July, 2023, when the last batch of Nigerian pilgrims returned home, officially ending the 2023 hajj operations, and today is September 1, 2023 – exactly one month after the end of hajj, and two weeks since the story was published – but NAHCON is still owing the airlines substantial amounts.
Mr Abdulsalam didn’t deny the existence of the 2023 Hajj Airlift Agreement, signed between NAHCON and the airlines. He also didn’t deny that NAHCON had grossly breached the contractual agreement.
Article 4.2 of the 2023 Hajj Airlift Agreement provides that NAHCON shall pay the air carriers 50% of the total agreed sum after signing of the airlift agreement and presentation of a bank guarantee.
The commission would pay another 35% upon completion of the outbound airlift to Saudi Arabia.
The article also provides that the airlines would be paid 10% after evacuation of 50% of inbound pilgrims back to Nigeria; while the remaining 5% would be paid to the airlines after reconciliation.
As Daily Nigerian accurately reported, quoting relevant sources, NAHCON has failed to meet its obligations one month after the completion of the hajj exercise.
In clear violation of the agreement, the commission only paid some of the airlines the second tranche after the commencement of the inbound journey.
The author didn’t also deny that NAHCON has blamed President Bola Tinubu (for its failure to transfer funds to CBN in time), even though the president was sworn-in five days after the commencement of 2023 hajj airlift.
It was a fact that thousands of pilgrims almost missed the 2023 hajj because of the delay in visa processing occasioned by NAHCON’s late remittance of funds to the Central Bank of Nigeria. The CBN couldn’t remit the funds to the pilgrims’ agencies and tour operators’ bank accounts in Saudi Arabia for the payment of hajj services. It took the intervention of Vice President Kashim Shettima, who directed CBN to process the payment despite the late remittance by NAHCON. This is another irrefutable fact.
It was, however, surprising how the commission, while seeking for three-day extension from Saudi Arabian authorities, blamed President Tinubu for its gross failure to remit pilgrims funds to CBN in time.
In a letter dated 21 June, 2023, with Reference No: NAHCON/AN/43/, the commission blamed President Tinubu for causing the financial hiccups that marred 2023 operations.
Addressing Saudi’s Vice Minister of Hail and Umrah, Dr. Abdel Fattah Mishaat, in a letter titled “Request for Extension of Deadline,” NAHCON chairman Zikirullah Kunle Hassan specifically blamed Mr Tinubu for halting transfer of funds abroad.
The letter signed by Mr Hassan read, “There was a change of government in Nigeria and the new government directed a halt in transfer of government funds which caused serious delay in the transfer of funds into the International Bank Accounts (BAN) and this delayed our processing of pilgrims’ visa.” This is another fact.
It was also a fact that about 29,000 pilgrims from Lagos, Ogun, Osun, Oyo, Niger, Zamfara, Sokoto and Kebbi states – who traveled to hajj through Flynas had asked NAHCON to refund the $100 deducted from their BTA ahead of the 2023 hajj.
The commission had deducted the BTA of the 75,000 pilgrims and shared it with the four local airlines – Max Air, Air Peace, Azman Air and Aero Contractors – that refused to sign the airlift agreement because of the Sudan conflict.
When the newspaper contacted the spokesperson of NAHCON, Mr Mousa Ubandawaki, he didn’t deny that NAHCON was owing the airlines. What he did was to explain the reasons for the delay in the payment to the airliners.
Mr Ubandawaki said the delay was a result of the discrepancy in the exchange rate. He said the exchange rate at the time the MoU was signed was around N400 to $1, adding that at the conclusion of the exercise, the exchange rate skyrocketed to about N700 to $1.
Fact is, Mr Ubandawaki’s excuses couldn’t hold water. There was no way the fluctuations in the Investors and Exporters Window would affect hajj operation. Mr President usually gives approval for exchange rate for the entire hajj transactions.
And since NAHCON has purportedly remitted the airlines’ funds to CBN in naira, the equivalent value in dollars (as per president’s exchange rate approval) would have been credited into its dollar account. Where are the fluctuations in the exchange rate? All hajj payments are made to CBN long before pilgrims airlift begins. Thereafter, NAHCON only pays its service providers, including airlines, from its funded dollar accounts.
The commission can only speak of exchange rate fluctuations if it did not fund its dollar accounts (by remitting all hajj funds paid to it by the state pilgrims boards) as demanded by law. This would be another breach that may require the attention of anti-graft agencies.
Insiders in the commission tell whoever cares to know that the Commissioner in charge of Policy, Personnel Management & Finance (PPMF) does what he likes and ignores the professional advice of his staff, while Mr Zikirullah remains helpless and can’t call him to order because they are birds of the same feathers.
It is childish to say the delay in payments by NAHCON was because it’s doing administrative due diligence. Let’s see this: the commission got the president’s approval for hajj exchange rate at least two weeks before it announced hajj fare on April 7, 2023. There is a solid two months between that time and the beginning of airlift on May 24, 2023. What was the commission doing in those two months?
Invariably, the way the commission conducted 2023 hajj exposed its administrative naivety. If at all they were afraid of exchange rate fluctuations, what they should simply do was go back to President Tinubu after May 29 and seek the revalidation of all approvals granted by his predecessor. That was not done. Rather, they blamed him for their gross ignorance.
It is on record that this is the first time in NAHCON’s history that the commission is still talking about the third tranche of airlines’ payment one month after the hajj was concluded. I stand to be corrected. This is also the first the commission is talking about foreign exchange differentials one month after hajj. Who is now going to shoulder the differentials? NAHCON or the federal government? This is totally avoidable if the NAHCON management knows its onions.
Like I said at the beginning, my intervention is precipitated by Mr Abdulsalam’s desperate attempt to deny what NAHCON didn’t deny, by callously trying to impeach the integrity of a professional journalist, by calling him a liar. Where is the lie? Who is lying between Mr Ubandawaki and Mr Abdulsalam? Why is Abdulsalam trying to shave NAHCON’s head in its absence?
Mr Abdulsalam is truly oblivious of the Qur’anic verses and Prophetic traditions that command us to say the truth notwithstanding whose ox is gored. A wholistic review of the 2023 hajj is underway. NAHCON ti n run, ko si iye ti ikede ti o le sọ òórùn àkóràn rẹ jẹ. (NAHCON stinks, no amount of propaganda can deodorise its infectious stench).
Mr Raheem can be reached at raheemy2050@gmail.com
BY ABUBAKAR YUSUF
In line with the decade of action , realizing SDGs 2020-2030 agenda, the mission and vision of government agencies, parastatals and departments must be in tandem with the present realities.
Therefore, efforts by the Financial Reporting Council, FRC to implement the already reviewed annual fee due for over two years cannot be over emphasized.
The challenges posed and identified by Manufacturers Association of Nigeria (MAN), as the umbrella body of companies operating in Nigeria may be normal and usual resistance to positive changes, posed by such bodies in the development, improvement and payment of dues across board.
But , irrespective of that , FRC under the leadership of Dr Rabiu Onaolapo Olowo has developed a new template, innovations and initiatives to drive the new council in line with not only the economic indices and realities in the country, but global requirements.
This is in accordance with the zeal to generate more revenues, increased revenue generation for remittances into the federation account to enable government meet up it’s obligations, through internal mechanism and revenue drive .
With the global standards and realities, FRC cannot be operating under the cocoon of archaic policies and programs, leaving behind the modern and modest standards of International Financial Reporting Standards (IFRS), among others requirements.
Penultimate, the experience of the council towards payment of dues and remittances had been lackadaisical and laced with various resistances , litigations and sharp practices, particularly before the new fee reviewed under the guise of many anomalies, which MAN had overlooked .
Therefore, as the administrative head charged with controls and regulations, The Financial Reporting Council, FRC cannot be seen to be underpinned between new evolution and old order , as a government agency under an act amended , the singular decisions to review its activities is encumbered as an independent entity.
Experience have showed that some publicly traded companies, listed on the Nigerian Stock Exchange (NSE), continue to underreport the claims and litigation section of their annual reports, This is despite the Financial Reporting Council of Nigeria (FRC)’s pledge to curb this before now.
The companies, published their 2023 audited financial reports at various times in 2024. However, each report contained figures lower than what was earlier revealed in a 2023 report.
According to the reports, the companies claimed cases against them in court amounted to huge amount .
“There are certain lawsuits pending against the companies in various courts of law. The total contingent liabilities in respect of pending litigations as at 31 December 2023 is ₦7.42 billion.”
“Some companies had the highest reported figure for claims and litigation of some companies in 2023. They stated that the cases against them amounted to N1.008 trillion claims. However, by June 30, 2024, the figure had become zero.”
This is at variance with FRC position, were many companies were underreporting their claims.
Since litigations may not stand the taste of time as adopted by previous leadership, the best solution is to effect an administrative decision beyond stagnating the activities of the new council and effect a new lease of life into the organization, through the enactment of the new regulations, reviews and controls.
“Not disclosing these claims in their annual reports for over a decade violates the International Financial Reporting Standards (IFRS), hence the new leadership envisaged in its new position and decision.”
“Despite the FRC’s vocal commitment to addressing inaccurate financial reporting, it was revealed that partial compliance two years later.”
“The International Financial Reporting Standards (IFRS) are a set of accounting standards introduced to govern how particular types of transactions and events should be reported in financial statements. They were developed by the International Accounting Standards Board (IASB).”
“This IASB has a set of accounting standards that guide certain aspects of financial reporting.”
“IAS 37 is a standard for accounting for and disclosing provisions, contingent liabilities and assets.”
It describes contingent liabilities as “possible obligations whose existence will be confirmed by uncertain future events that are not wholly within the control of the entity”.
“An example is litigation against the entity when it is uncertain whether the entity has committed an act of wrongdoing and when it is not probable that settlement will be needed,” it states.
“A contingent liability is not recognised in the statement of financial position. However, unless the possibility of an outflow of economic resources is remote (distant), a contingent liability is disclosed in the notes.”
“Going by this provision, all defendants in the suit had contingent liabilities of at least N1.2 trillion each.”
“It is important to highlight that companies in business either have assets or liabilities. Assets add to the financial health of the company while liabilities are losses. ‘Contingent’ is a term that refers to something that is subject to probability or chance, and just as there are contingent liabilities, there are contingent assets.”
“Some companies were taking advantage of an exploitable gap in the IAS37 to operate .”
Interestingly, Council generally observed an exploitable gap in disclosure requirements as per IAS 37: ”
Provisions, Contingent Liabilities and Contingent Assets, especially as it relates to Contingent Liabilities. Paragraph 92 of IAS 37 which states that ‘In extremely rare cases, disclosures of some or all of the information required by paragraph 84-89 can be expected to prejudice seriously the position of the entity in a dispute with other parties on the subject matter of the provision, contingent liability or contingent asset.”
” In such cases, an entity need not disclose the information, but shall disclose the general nature of the dispute, together with the fact that, and reason why, the information has not been disclosed’ is instructive in this regard. This implies that entities are not compelled to disclose number of claims and financial implications thereon as such information has the potential to prejudice their position in disputes with other parties.”
“In the course of the reports, some companies declared huge amount of N11.3 trillion in contingent liabilities in its 2023 annual report; the highest it had ever declared since 2014.”
However , to achieve the global SDGs 2020-2030 agenda with Nigeria playing a leading position, the ongoing sharp practices, inactions, anti government and anti council policies by companies in the area of declaration of transparent and accountable financial reports , that is in tandem with the global standards and practices must be adhered to, in line with the intention of the new management and leadership under Dr Rabiu Onaolapo Olowo as the Executive Secretary, Chief Executive Officer ES CEO of Financial Reporting Council, FRC.
Written BY ABUBAKAR YUSUF on yus.abubakar3@gmail.com.
There is something common in politics and with Politicians in this clime, it stems from the arrogance of power, it stinks to high heavens, it is shit in its worst form; that a few men and women play God, they assume that their egocentric predilections represent the collective will, and they undermine the Law as well as the mindset of the electorate. They move to Party B with the mandate given to Party A by the People. And they Cross-carpet or decamp to another Party without deference to the provisions of the Law.
Just yesterday the entire Political Structure in my home State of Delta was led by the State Governor Mr. Sheriff Oborevwori from the Peoples Democratic Party PDP to the All Progressive Congress APC, that tsunami of sorts happened without firm reasons but the usual refrain that ‘they want to align with the centre for more democratic dividends to come to the State’. I wouldn’t have opted to do this piece had the All Progressive Congress APC made great feats of the States under its watch, alas President Bola Ahmed Tinubu (PBAT) and his followers are masters of deceit, subterfuge and perfidy. They spew soulless propaganda, having no soul they lack moral margins, they lie about everything and they destroy the moral fabrics of our nation. They are shameless, spineless and have no scruples.
Where is the Soul of the men of power who dumped the PDP just yesterday for the APC in Delta State? They have chosen to stand on a Blood Stained Mandate. They have elected a Hunger ridden mandate. They have chosen a corruption riddled mandate. They laud an insecurity enabling mandate. They salute a nepotistic mandate. And they dance to a frustration festering mandate. Had the PBAT led APC at the Centre made Nigeria better than it met her, I would applaud Governor Sheriff and his fellow travelers, but the truth is what consistently the APC, including Governor Sheriff Oborevwori and his men have chosen to trample upon, nay the Truth is that under the PBAT led APC Government, Nigeria is today worse than it was yesterday.
What logic situates the movement of the Delta State Political Structures from the PDP to the APC at a time when Nigerians feel the most unsafe in their homeland? When the States of Plateau, Benue and Bornu have become theatres of human barbecues. Is it not stupidity to elect a blood stained and a blood soaked mandate over being in a Party in the opposition?
Is it not a show of shame to elect a mandate that has left the masses of the people in poverty, despondency and want over fueling the fervour of an opposition seeking a new deal and a new Republic of hope for the people? Which sincere and people oriented leader would dump the opposition for a Party that is absolutely rudderless and progressively multiplying poverty? Only the soulless and the shameless, surely.
The fulminating shenanigans that undermine the monstrous corruption of the APC Government, the unending Infrastructural decay, the unhinged failure of the energy and the power sector, the pervasive hunger, disease and pain in the land, and the murderous gangs killing and maiming citizens with reckless abandon defines the Olympic soullessness of the Delta State Political Merchants who have elected a Blood Stained Mandate over matching for the redemption of Nigeria.
I believe that it is manifest stupidity to desert the opposition at a time that our nation is in dire straits and badly craving vibrant opposition. I believe that it is a show of shame to decamp to a Party and a Government that has failed to protect lives and property.
And I hereby lampoon with unbridled vehemence all those who have chosen to stand on the blood stained and blood soaked mandate that PBAT epitomizes.
Hmmm, so suddenly my home State is now APC, interesting. A class of less than 300 people nay ‘leaders’ met at the Government House in Asaba, and in one fell swoop changed the political colour, temperature and identity of the State, interesting. My People, this One-Party State wey APC and PBAT dey push and pursue na to what end? PBAT and his Party the APC through this manifest antics of State capture have tied democracy to the stake, and are daily through acts of impunity, lawlessness, and braggadocio shooting violently at democracy, I pray they do not shoot this jingleover democracy to death. I pray that they understand that One Party State is the precursor to Authoritarian Rule and Dictatorship. And I pray that they are not oblivious of the politico-social tendencies of the Nigerian State, a State that cannot and has never been captured by any one tendency. In any case, before they completely murder democracy, it must be on record that someone warned against the Stupidity, against the Show of Shame and against the Shenanigans of our Political Operators.
Call me names, but let it be on record that when the elders and the hoard of egotistic political merchants that predominate our political kaleidoscope fiddled with the poisoned chalice of sycophancy and hypocrisy, I wasn’t quiet. Let it be on record that when they ate poisoned bread baked with blood stained and blood soaked mandate, and when they chose to dance on the tombs of the dead across our space who were unlived because government failed to protect them, that someone called out the discerning, and warned against the omnious times that they make certain.
The sequel to this patriotic effort shall most certainly tell more, reveal more and foretell the pitfalls that a most arrogant and self-seeking political class weave in the path of our ‘democracy’. We have got some difficult days and difficult times ahead.
Call me the Wailer, that’s ok, for I Wail that Nigeria may become Great.
Prof Chris Mustapha Nwaokobia Jnr
Convener COUNTRYFIRST MOVT. A Good Governance Advocacy Group.
It was the famous American former President, Abraham Lincoln who noted that the people when rightly and fully trusted will return the trust.
Thus, when the trust level gets high enough, people exceed apparent limits, discovering new and awesome abilities of which they were formerly unaware.
When trust is placed on those who occupy public office, they need to work had to continue to justify the trust in the people they preside over.Appointment into office is premised on the facts that the appointee is capable and will be of immense values to the realization of the aspirations of the government in power.
Thus, with the coming of President Bola Ahmed Tinubu into office, series of strategic appointment of respected and credible niger9ians were made thereafter.
President Bola Ahmed Tinubu had the qualities of appointing the right people in the right position, having judged their qualification and capabilities. This is a unique ability which good leaders to possess in abundance.
It was this sense of judgement that made him to appoint Chief Adegboyega Isiaka Oyetola CON as the current minister of Marine and Blue Economy.He was the former chief of Staff to the former Governor of Osun State and later became the governor of the state.
Whereby he displayed integrity, self-awareness, courage, respect, compassion, and resilience. This role allowed him to exhibit his administrative shrewdness and dedication to the advancement of the state.
During this time, he played a critical role in implementing policies and initiatives aimed at improving education, healthcare, and infrastructure.He was later appointed minister of transportation by President Bola Tinubu on 16 August 2023, but redeployed four days later to the newly created Ministry of Marine and Blue Economy.
Despite the newness of the ministry, his leadership abilities and acumen as well as his professional qualification eminently qualifies him for the arduous job, for he pursued his education with diligence, earning a degree in Applied Accounting from the prestigious University of Lagos.
With a passion for learning and a keen eye for effective management, he embarked on a career that would see him excel in various sectors.
According to the World Bank, the blue economy is the “sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of ocean ecosystem.”
European Commission defines it as “All economic activities related to oceans, seas and coasts, the realization that Nigeria has vast ocean ecosystem justifies the creation of the ministry.
The ministry’s four action pillars for its first four years (2023–2027) are: promoting sustainable blue economy investments; transforming port operations; enhancing port infrastructure; and strengthening blue governance.
Under Oyetola’s leadership, the ministry targets attracting $2 billion in investments in offshore renewable energy by 2025; establishing at least five new fish processing plants by 2025 and at least two new coastal tourism sites by 2026; and creating three million marine and blue economy-related jobs by 2027.
The importance of this ministry lies in the fact that the life of the planet and correct functioning of ecosystem services are sustained by marine ecosystems.
The blue economy thus has the potential to achieve a sustainable development which does not compromise life on Earth tomorrow.
Thus, his appointment eminently justifies and in line with the aspiration s to make Nigeria a great nation.His achievements in office are attributed to maritime security and safety, port operational efficiency, infrastructure rehabilitation, connectivity and blue economy development.
The Minister, who unfolds the strategic plans of the Ministry and the Agencies which would focus on maritime security, safety, ship building & maintenance, maritime governance, port infrastructure rehabilitation, capacity building, among others.
Under his leadership, the Nigeria’s territorial waters became safer especially in the Gulf of Guinea (GoG) in the past one year, with the maritime sector recorded zero incidence of piracy and maritime terrorism for more than one year.
Ports were upgraded and his ministry worked assiduously to actualize the implementation of the National Single Window at the nation’s ports to facilitate trade and competitiveness of country’s port system.
The value his outstanding leadership will also impact on the acceptability and reelection of the present administration in 2027.
We Commend President Bola Ahmed Tinubu on the confidence reposed in and the subsequent Appointment of Chief Gboyega Oyetola as the Minister of the Marine and Blue Economy.
He is honest and transparent in his stronger determination to reposition the sector as the leading source of revenue to the country and will surely do more based on his past robust antecedents. We thus call on all Nigerians to support his vision and pragmatic leadership in the office, so as to enable impact the lives of many more citizens of the country.
Dr K.M.Tugga is an Abuja resident and public affairs commentator