Buhari subsidises Islamic Pilgrimage at the expense of key sectors of the economy

The Federal Government under President Buhari keeps telling Nigerians that they should fasten their seat-belt due to dwindling oil revenue which is the mainstay of the nation’s economy. Workers’ salaries are not being paid as at when due, pensioners are dying daily from starvation, poor funding of basic infrastructures to mention but a few.

Yet in the midst scarce foreign exchange, the President has given a matching order to the CBN to subsidise Islamic Pilgrims to Saudi Arabia at a concessionary exchange rate of N197 to $1 USD, through the various commercial banks in the country. Yet students studying overseas and those travelling abroad along with some importers of essential goods and services cannot be subsidised, rather, they source for these hard currencies at a very high rate.

The directive was contained in a circular on Thursday marked TED/FEMFPC/GEN/01/005.

The CBN said that, “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.

“No commission shall be charged by the banks for the sale of the PTA to the intending pilgrims.

“The Central Bank of Nigeria shall sale the PTA to the designated banks in Lagos and Abuja and the accounts of the respective banks shall be debited as soon as the funds are disbursed”.

For the meantime, the Naira plunged to N400 to $1 yesterday at the parallel market.

After closing at around N378 against the dollar for most part of last week, the naira dropped to 380 on Friday before falling to 382 on Monday.

The currency closed at 315.06 (official) to the United States dollar at the inter-bank market on Thursday.

From the foregoing, Nigerians and the world at large can see that this government is indeed confused and lack sense of direction. Also, one wonders what economic benefit these pilgrims will yield to the country.

At the end of the day, most of these Pilgrims will go through the back door to sell USD at the black market rate, thereby making a mockery of the anti-corruption war President Buhari claimed to the fighting and inflict more hardship on the masses.