17 March 2009

Lagos/Abuja — This year's Muslim pilgrimage to Saudi Arabia may suffer some hitches because the National Hajj Commission of Nigeria is yet to remit $13.9 million (about N63 billion) to Saudi aviation service providers.

Nigerian news papers said that NAHCON is also indebted to the four Nigerian carriers that airlifted pilgrims to the holy land last year - Kabo Air, Med-View Airlines, Meridian Airlines and IRS/Air Niamey.

Findings revealed that the debt overhang has had a negative impact on preliminary discussions between NAHCON and Saudi Air as the airline was said to have cited the debt as a major reason it may not want to have any dealing with the Commission for this year's hajj.

In addition, Saudi aviation service providers are said to be waiting for the time that airlines contracted by NAHCON would request for their services.

"The service providers know that Nigeria always comes at the eleventh hour and they (the Saudi aviation service providers) are waiting. They would compound problems for any airline that would be involved in this year's hajj exercise," said a Nigerian aviation debt recovery consultant hired to collect the debt.

Findings revealed that the $13.9m debt is the 10 per cent dollar denominated part of the contract for the airlift of 82,000 Nigerian pilgrims who paid $1,7000 dollars each through the various state pilgrims boards to perform the 2008 hajj.

The ten per cent dollar content of the contractual agreement between the four government-designated carriers takes care of off-shore payments for services like fuelling, ground handling, and passenger processing, among other logistics.

Sources close to the affected airlines said they would not be surprised by any action taken by the service providers. They blamed NAHCON for the situation and lamented that those who granted them credit facilities in Saudi Arabia based on good faith "have now contracted an agency to recover the debt."

The sources added that it was not only the 10 per cent that had not been paid by the commission; the five per cent final payment in naira due to the designated carriers after the completion of the airlift operations was still outstanding.

They alleged that NAHCON had made full payment to Ethiopian Airlines, but that the carrier still has luggage to ferry to Nigeria. They alleged that the commission had no compunction for the plight of local airlines it contracted for the exercise.

It is not only the affected airlines that are worried by the action of NAHCON. The chairman of one of the state Pilgrims' Welfare Boards, who pleaded anonymity, expressed concern about the development, saying that states had made full payment on behalf of their pilgrims.

In his reaction, NAHCON Chairman, Alhaji Muhammad Musa Bello, said the airlines were paid a part of the outstanding contract fee recently. The balance, he said, would be paid as soon as the commission is through with its reconciliation with the various state Pilgrims' Welfare Boards in terms of total pilgrims airlifted by each carrier, as well as the confirmation that all the pilgrims' luggage had been delivered.

Bello assured the four air carriers that participated in the airlifting of pilgrims to Saudi Arabia in 2008 that their outstanding payment would soon be completed.

"The air carriers for the 2008 hajj had been paid a portion of their outstanding payments about two weeks ago. The balance shall be paid shortly as the commission is almost through with reconciliation with the state Pilgrims Welfare Boards in terms of total pilgrims airlifted by each carrier, as well as confirmation that all pilgrims' luggage had been delivered."

An impeccable source in the commission confirmed that a substantial part of the payment has been paid to the airlines, adding that the delay being experienced was due to the commission's effort to ensure reconciliation of outstanding issues and to avoid wrong payment.

"All the airlines have been paid up to 95 per cent dollar content, while the balance of 5 per cent will be paid after reconciliation and confirmation by the state Pilgrims Welfare Boards on claims by those who could not make the hajj due to health or other related reasons.

"The airlines were paid two weeks ago, while a substantial part and the balance will be paid soonest. Many claims from the state are still being processed. Final payment cannot be made now to avoid mistakes of wrong payment," the source said.