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Saudi firm accuses Nigerian Hajj commission of contract breach

Published

12 months ago

February 18, 2025

National Hajj Commission of Nigeria (NAHCON)

Saudi firm accuses Nigerian Hajj commission of contract breach

Mashariq Al Dhahabiah Al Mutawazi, the Saudi Arabian company contracted by the National Hajj Commission of Nigeria (NAHCON) and states Muslim Pilgrims Welfare Boards to provide services to Nigerian pilgrims during the 2025 Hajj exercise has threatened to take Nigeria to an international arbitration court due to the commission’s alleged “failure to adhere with terms of contract”.

The company, in a letter dated 1446/08/17 (17/02/2025) addressed to the head of Nigerian pilgrims’ affairs office in Makkah, said the commission breached its contract agreement that it would be the sole service provider for Nigerian pilgrims during the Hajj exercise, especially in Muna and Arafah.

It, therefore, gave the commission 20 days to normalise all the agreements signed by the two parties failing which it take the NAHCON to an international arbitration panel

Agreement

Mashariq Al Dhahabiah Al-Mutawazi and NAHCON had signed an agreement to cater for Nigerian pilgrims during the exercise on January 17 2025, but the forum of states’ pilgrims welfare boards raised an alarm that NAHCON’s Chairman, Prof. Abdullahi Usman Saleh, had unilaterally cancelled the contract days to the closure of payment deadlines to agreed companies by countries participating in the exercise.

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The NAHCON chairman had denied that he arbitrarily cancelled the agreement, saying it was the decision of authorities in Saudi Arabia.

The commission was said to have allegedly split the contract with Mashariq Al Dhahabiah Al Mutawazi and Ikram Diyafa before the February 14 deadline set by the Kingdom of Saudi Arabia elapsed.

According to a report by Hajj Reporters, Mashariq Al Dhahabiah Al Mutawazi had stated that NAHCON allocated 26,287 to it, even though the commission had announced it secured tent space for 52,544 Nigerians to participate in the Hajj exercise, meaning that the remaining 26,257 Nigerians would be catered for by the second company.

Company gives NAHCON 20 days to settle

In the letter sent to NAHCON, Mashariq Al Dhahabiah Al Mutawazi said: “Given that the number of pilgrims whose data you have provided to us and who are registered in the Massar (NUSUK) system for international pilgrims’ services amounts to (26,287) pilgrims as of this date, your contracting with one or more companies other than Mashariq Al Dhahabiah for pilgrim services constitutes a clear violation of the aforementioned clause. This is especially true since Mashariq Al Dhahabiah has taken all necessary measures to serve the pilgrims arriving from the Federal Republic of Nigeria, as outlined in the previous correspondence shared with you.

“In addition to your failure to comply with the provisions of Clause (1) of Article IV of the contract for providing services to the Nigerian Hajj delegation for the Hajj season 1446AH, it has been demonstrated through practical experience during the previous period that you have not shown seriousness in fulfilling the aforementioned obligations. Following up on our previous correspondence regarding the registration of all pilgrims arriving from the Federal Republic of Nigeria in the Massar (NUSUK) system for international pilgrims within the deadlines specified by the Ministry of Hajj and Umrah, it has come to our attention that the Nigerian Pilgrims Affairs Office has contracted with other service providers to offer services to pilgrims arriving from Nigeria for the Hajj season (1446 AH), excluding Mashariq Al Dhahabiah for pilgrim services, without obtaining the approval of Mashariq Al Dhahabiah for pilgrims services”, it said.

The company said the action constitutes a clear and explicit violation of the provisions of Clause (1) of Article IV, of the contract for providing services to the Nigerian Hajj delegation for the exercise.

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“The First Party (your office) is obligated to ensure that the number of pilgrims arriving to perform the Hajj rituals for the season of 1446AH is (95,000) pilgrims, following the instructions of the Ministry of Hajj and Umrah. This number includes males, females, and children. The First Party also commits to providing the Second Party (Mashariq Al Dhahabiah) with a detailed statement of the numbers for each gender and age group by 1446/08/08AH, corresponding to 2025/02/7. This is especially true since Mashariq Al Dhahabiah has taken all necessary measures to serve the pilgrims arriving from the Federal Republic of Nigeria, as outlined in the previous correspondence shared with you. Despite issuing several pledges to contract with Mashariq Al Dhahabiah for pilgrim services for the full share of pilgrims under the Nigerian Pilgrims Affairs Office or through Hajj tourism companies, unfortunately, we have not observed any actions from your side reflecting your commitment to fulfilling these obligations. On the contrary, you have contracted with other service providers instead of Mashariq Al Dhahabiah for pilgrim services, which has caused significant harm to the company”, it said.

It added: “Therefore, and in reference to Article (21) of the aforementioned contract, which stipulates the following: Any dispute arising in relation to the implementation or interpretation of the terms and conditions of this agreement shall be resolved mutually between the two parties within twenty (20) days. Otherwise, it shall be referred to arbitration. Each party shall appoint an arbitrator and bear the associated costs, while the third arbitrator shall be jointly appointed by both parties, and the costs shall be shared equally.”

It, therefore, urged NAHCON to urgently schedule a meeting to discuss the breaches of the agreement.

“Please note that if you fail to respond to the contents of this letter, the company will proceed to implement the provisions of Article (21) of the aforementioned contract. We kindly request your acknowledgment and attention to this matter”, it said.

Daily Trust made several attempts to get comments from NAHCON on the issue yesterday to no avail.

However, shortly before going to press, NAHCON’s spokesman, Muhammad Ahmad Musa, sent a message to our reporter saying, “We just talked with the Chairman/CEO and he said we will deliberate on that tomorrow (today).”

Breach shows Nigeria yet to learn from previous int’l cases

A stakeholder in the Hajj industry, who spoke under the condition of anonymity, said the current development, which is an embarrassment to the country, showed Nigerian public holders are yet to learn from the legal saga from the P&ID as well as Sunrise Power cases.

He said that the desperation with which the NAHCON leadership signed the agreement with the second company indicated that it may have an undeclared reason for first cancelling the agreement, and then splitting the contract, which he said the Kingdom of Saudi Arabia would frown at, if it is not settled amicably.

“After the meeting, if the conflict has not been resolved, then the party will go for arbitration in the Kingdom (Saudi Arabia). And if in the arbitration, any of the parties is not convinced of the judgment, then they will go for a real court procedure”, the source said.

He added that the contracting firm had previously served Nigerian pilgrims.

“This is because the state pilgrims boards are the owners of the pilgrims as NAHCON is just a regulator. I was told the chairman had preferred the company that served Nigeria last year which failed in its responsibilities, and the country has been using them since 2022 without satisfactory services. So that’s why this year, they said no. They need a new service provider and they came up with Mashriq Al Dhahabia Al Mutawazi. They have a good relation with Nigeria and they served excellently during those years”, the source claimed.

Saudi firm accuses Nigerian Hajj commission of contract breach

Related Topics:Hajj commission Nigerian Saudi firm

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