Home / Exclusive News / Saudi Firm Threatens Legal Action Against Nigeria Over Alleged Hajj Contract Breach

Saudi Firm Threatens Legal Action Against Nigeria Over Alleged Hajj Contract Breach

Nigeria

A Saudi Arabian company, Mashariq Al Dhahabiah Al Mutawazi, has threatened to drag Nigeria to an international arbitration court over an alleged breach of contract by the National Hajj Commission of Nigeria (NAHCON). The company, which was contracted to provide services for Nigerian pilgrims during the 2025 Hajj, accused NAHCON of failing to honor its agreement.

According to a letter dated February 17, 2025, addressed to the Nigerian Pilgrims Affairs Office in Makkah, the company claims NAHCON violated its commitment to use Mashariq Al Dhahabiah Al Mutawazi as the sole service provider for Nigerian pilgrims in Muna and Arafah. The company has given NAHCON 20 days to address the issue or face legal action before an international arbitration panel.

Documents reviewed indicate that NAHCON and Mashariq Al Dhahabiah Al Mutawazi signed an agreement on January 17, 2025. However, shortly before Saudi Arabia’s deadline for Hajj service payments, the Forum of States’ Pilgrims Welfare Boards alleged that NAHCON Chairman, Prof. Abdullahi Usman Saleh, unilaterally canceled the contract.

Prof. Saleh, however, denied this claim, insisting that the decision was made by Saudi authorities. Reports suggest that NAHCON later split the contract between Mashariq Al Dhahabiah Al Mutawazi and another company, Ikram Diyafa, before the February 14 deadline.

Instead of handling all Nigerian pilgrims as originally agreed, Mashariq was allocated only 26,287 of the 52,544 pilgrims, with the rest given to Ikram Diyafa. Mashariq Al Dhahabiah Al Mutawazi argues that NAHCON’s decision to contract another company without its consent is a clear violation of their agreement.

The company insists it had made all necessary preparations to serve Nigerian pilgrims and accuses NAHCON of mishandling its obligations. Citing Clause (1) of Article IV of the contract, Mashariq asserts that NAHCON’s failure to allocate all 95,000 Nigerian pilgrims to it constitutes a serious contractual breach.

The company has warned that if the issue is not resolved within the 20-day deadline, it will invoke Article (21) of the contract, which mandates arbitration for dispute resolution. NAHCON has yet to officially respond to the allegations. When contacted, the commission’s spokesperson, Muhammad Ahmad Musa, said the leadership would deliberate on the matter.

A stakeholder in the Hajj industry, speaking anonymously, described the situation as an embarrassment to Nigeria, comparing it to previous international legal disputes the country has faced. The source suggested that NAHCON’s decision to split the contract might have been influenced by undisclosed interests and warned that Saudi authorities would not take kindly to the dispute.

The source further alleged that the NAHCON chairman had a bias toward the previous service provider, despite complaints of poor service delivery in past years. In contrast, Mashariq Al Dhahabiah Al Mutawazi has been known for providing high-quality services to Nigerian pilgrims.

Tagged:

Leave a Comment

Discover more from ParrotMouth

Subscribe now to keep reading and get access to the full archive.

Continue reading