Saudi Arabian company threatens to sue Nigeria's Hajj commission over ‘contract breach’

 Saudi Arabian company, Mashariq Al Dhahabiah Al Mutawazi, has threatened to take Nigeria to an international arbitration court over an alleged breach of contract by the National Hajj Commission of Nigeria (NAHCON). 

 

The company, contracted to provide services to Nigerian pilgrims during the 2025 Hajj exercise, accused NAHCON of failing to adhere to the terms of their agreement.

In  a letter dated February 17, 2025, addressed to the Nigerian Pilgrims Affairs Office in Makkah, the company stated that NAHCON violated its contractual obligation to use Mashariq Al Dhahabiah Al Mutawazi as the sole service provider for Nigerian pilgrims in Muna and Arafah. The company gave NAHCON 20 days to rectify the situation or face legal action in an international arbitration panel.

Documents reviewed indicate that NAHCON and Mashariq Al Dhahabiah Al Mutawazi signed an agreement on January 17, 2025. However, the Forum of States’ Pilgrims Welfare Boards later alleged that NAHCON Chairman, Prof. Abdullahi Usman Saleh, unilaterally canceled the contract just days before Saudi Arabia’s payment deadline for Hajj service providers. Prof. Saleh denied the accusation, stating that the decision was made by Saudi authorities.

 

It was reported that NAHCON divided the contract between Mashariq Al Dhahabiah Al Mutawazi and another company, Ikram Diyafa, before the February 14 deadline set by Saudi authorities. Mashariq Al Dhahabiah Al Mutawazi claimed it was allocated 26,287 Nigerian pilgrims, despite NAHCON's earlier announcement that it had secured tent spaces for 52,544 pilgrims, effectively giving half of the contract to the second company.

In its letter to NAHCON, Mashariq Al Dhahabiah Al Mutawazi emphasized that contracting with other service providers without its consent was a "clear violation" of the agreement. The company insisted that it had made all necessary arrangements to serve Nigerian pilgrims and accused NAHCON of lacking seriousness in fulfilling its obligations.

 

Citing Clause (1) of Article IV of the contract, the company argued that NAHCON’s failure to allocate all 95,000 Nigerian pilgrims to it, as per the agreement, constituted a contractual breach. It warned that if the matter was not resolved within the stipulated 20 days, it would invoke Article (21) of the contract, which mandates arbitration for dispute resolution.

Alexa News attempted to get NAHCON’s response but received no comment. However, NAHCON spokesperson Muhammad Ahmad Musa later stated that the commission's leadership would deliberate on the matter.

 

A Hajj industry stakeholder, speaking anonymously, described the situation as an embarrassment to Nigeria and likened it to previous international legal battles involving the country. The source suggested that NAHCON’s decision to split the contract may have been influenced by undisclosed reasons and warned that Saudi authorities would frown upon the dispute if not amicably resolved.

 

The source further alleged that the NAHCON chairman favored the previous service provider, despite complaints about subpar services in recent years. In contrast, Mashariq Al Dhahabiah Al Mutawazi had a strong record of providing excellent services to Nigerian pilgrims in the past.

 

The situation remains unresolved as both parties prepare for further discussions.