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August 02, 2007
FG stops Hajj subsidy: Pilgrims to pay more
Pilgrims will no longer be granted concessionary currency exchange rate from next year, the Federal Government announced yesterday.
Written by AbdulFattah Olajide
Thursday, 02 August 2007
The Minister of Information and Communication, Mr. John Odey made the announcement while briefing State House correspondents after the first Federal Executive Council (FEC) meeting under President Umaru Musa Yar’Adua.
He said the subsidised exchange rate being enjoyed by Muslim and Christian pilgrims will end with the 2007 pilgrimage for which the FEC has approved an exchange rate of N120 to $1. Even with this year’s concessionary exchange rate, the Hajj fares announced...
by the govern-ment range between N353,000 and N443,000 for pilgrims from the North, while their Southern counterparts will pay between N359,000 and N449,000.
The minister also announced government’s decision to return the Bureau of Public Service Reforms to the office of the Head of Service of the Federation (HOS), from where ex-president Olusegun Obasanjo had earlier removed it to the Presidency.
The planned withdrawal of exchange rate subsidy would ostensibly hike next year’s Hajj fares and probably put Hajj beyond the reach of many intending pilgrims.
Odey explained that government’s decision to cancel the exchange rate subsidy for pilgrims was informed by the need to ensure
that only those who can afford the pilgrimage embark on it,since it’s a purely religious affair.
Said he: "the decision of government in doing this is in line with the religious doctrine. For you to go on Hajj, it is if you can afford it. It is not even compulsory.
The decision is also for effective and efficient mana-gement of the scarce resour-ces now".
The minister however stated that government would continue to facilitate pilgrimages through other means. "The government is funding the structure and other opportunities that will facilitate safe and easy arrangement for this pilgrimage, so the issue of subsidy is not the only area where government is obviou-sly giving considerations. The issue of subsidy as it pertains to travel is becoming a great issue of concern because government is recei-ving requests for concessio-nary exchange rates in so many areas that government cannot afford", he explained.
He added that relevant government agencies have been directed to give govern-ment’s decision to cancel the concessionary exchange rate adequate publicity.
On the reversal of the Obasanjo administration’s transfer of the Bureau of Public Service Reforms to the Presidency, the minister said a seven-man committee has been established to examine the proper status of the bureau and report to government within one week. The committee is expected to advice the government on whether the bureau should be autonomous or domiciled in the HOS’ office.
The committee which is headed by the Attorney general of the Federation and minister of Justice, has as members the Ministers of Information and Communication, Defence, Science and Technology, National Planning, Federal Capital territory and the HOS.
Posted by Publisher at August 2, 2007 08:24 AM
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