Connect with us

Business

Nigerians lose millions in dashed Umrah dreams due to US-Iran war

Published

on

Hundreds of Nigerian Muslims preparing for this year’s Umrah pilgrimage have been stranded after the escalating United States/Israel-Iran war disrupted flight operations across the Middle East, forcing airlines to cancel services and leaving intending pilgrims and travel agents counting millions of naira in losses.

Saturday PUNCH gathered that many of the affected pilgrims had already obtained visas and paid for flights and accommodation in Mecca and Medina before airlines began suspending services across parts of the Middle East due to the conflict.

Some of the intending pilgrims, who spoke to our correspondent, said they were scheduled to depart Nigeria between March 4 and 6 for the holy pilgrimage but were unable to travel after several airlines cancelled or suspended operations in the region.

Umrah is a lesser Hajj performed by Muslims all year round in Saudi Arabia, but it usually draws large numbers of Islamic faithful during Ramadan.

Millions of Muslims usually perform Umrah during the last 10 days of Ramadan.

Available records show that over 122 million Muslims performed Umrah during the 2025 Ramadan period.

However, the scale of strikes by Iran on US military bases and other target areas in the Middle East has forced many airlines to suspend flights in Gulf states.

On February 28, US President Donald Trump and Israel declared war on Iran, killing the country’s Supreme Leader, Ayatollah Ali Khamenei, after missiles struck his office in Tehran.

Dubbed ‘Operation Epic Fury,’ both the US and Israeli militaries launched strikes against targets in Iranian cities, triggering explosions and columns of smoke.

This followed months of simmering tensions and a total collapse of diplomacy and negotiations between the US and Iran over the development of nuclear weapons by the Islamic Republic.

Speaking from the Mar-a-Lago Situation Room on Friday, Trump framed the offensive as a pre-emptive necessity to neutralise Iran’s nuclear ambitions.

Tehran also launched retaliatory missile and drone attacks across several countries in the Middle East and nearby regions, targeting US bases, allied facilities and strategic infrastructure.

Iran’s retaliation, codenamed, ‘Truthful Promise 4,’ also saw dozens of missiles launched toward Israel.

Tehran has attacked military bases and assets in about 10 countries in the region, including Saudi Arabia, Qatar, Kuwait, Bahrain, the United Arab Emirates, Jordan, Iraq and Oman.

The war resulted in the closure of critical airspace routes such as Doha and Dubai, while Iran, Iraq, Israel, Syria, Kuwait, Qatar and the UAE all announced at least partial closures of their skies after the US and Israeli attacks on Iran.

See also  SEE FULL LIST: IG deploys new AIGs, CPs in major police re-organisation

Similarly, many airlines, including Emirates, Etihad, Qatar Airways, Air France, Turkish Airlines, EgyptAir and Ethiopian Airlines, cancelled services in the region due to the tensions.

Umrah plans disrupted

The cancellation of services by the airlines disrupted the Umrah plans of many Nigerian Muslims who had made the necessary arrangements for the trip.

Saturday PUNCH gathered that a local government chairman in Ilorin, Kwara State, and two other government officials were affected by the cancellation of airline services.

The intending pilgrims, according to one of them who spoke with Saturday PUNCH on condition of anonymity, were to leave Nigeria on March 4 with Emirates Airline.

The government official disclosed that they had secured accommodation at Poinciana Hotel in Mecca and another facility in Medina.

According to him, a sum of 12,500 Riyal was paid by each of them for a hotel in Mecca for their entire stay, while those who intended to lodge in Medina had paid 7,000 Riyal per night.

“It is a painful experience that we couldn’t proceed with the Umrah trip because of the war. We had paid for everything – visa fee, accommodation, flight and other expenses. We are four in a group that wanted to go for the Umrah. A local government chairman is among us, alongside two other government officials.

“My hotel accommodation in Mecca cost 12,500 Riyal, equivalent to about N5m. Some other people that I know have also paid 7,500 Riyal per night for a room in a Medina hotel, and they booked for four nights.

“We have invested millions of naira in the trip, and our visa will expire on April 8,” he said.

The official added that the travel agent who packaged the trip for them had sought a refund from Emirates Airline, but was told they could only reschedule their trip, with the airline declining the refund request.

“Our agent has spoken with the hotel management in Mecca and Medina, but nothing concrete has come out. We were told that even if we are refunded, it would not be the full amount we paid,” he added.

Similarly, a popular butcher in Osogbo, Osun State, Rasaq (surname withheld as requested), lamented that he had spent over N13m on the Umrah trip for himself and his wife.

According to Rasaq, he and his wife were to leave for Saudi Arabia on Qatar Airways from the Murtala Muhammed Airport in Lagos on March 3 before the airline cancelled services in the Middle East.

“We were to lodge at a hotel in Medina and everything had been paid for. We were set for the trip; it cost us about N13m, including visa fees, hotel accommodation and flight tickets.

See also  Soludo closes Onitsha market for one week, see why

“Apart from me and my wife, two other people were going with us. We were supposed to travel in a group, but everything has been messed up for us. It is painful. Our agent is talking to Qatar Airways for a refund,” he said.

However, the agent told Saturday PUNCH that the airline could only reschedule the intending pilgrims’ flight based on his discussion with the company.

The agent, who spoke on condition of anonymity, said, “It is true that we are seeking a refund from the airline, but I am not sure it will work out. The cancellation of services in the Middle East by the airline is as a result of the war, not because of any issue from the airline.

“When things like this happen, what airlines generally do is ask the clients to reschedule their trip, and a new air ticket will be issued for them. I am also in touch with the hotel management in Medina, but I cannot disclose everything.”

This is as an Islamic cleric in Ibadan, Oyo State, Alhaji Jamiu Babatunde, told Saturday PUNCH that his planned trip was disrupted after his flight booking was cancelled.

“I was supposed to travel when Ramadan reaches the 20th day using Qatar Airways, but I received a message that my ticket had been cancelled and reopened.

“I planned to travel with my family. It was a promise I made two years ago and we had worked towards it. Now we are stranded and not sure it will be possible again this year,” he lamented.

Similarly, Ibadan-based businessman Abdullahi Abubakar said the uncertainty had also affected his business preparations ahead of the Sallah celebration.

“Beyond the spiritual aspect, I usually use the Umrah trip to buy goods to stock my shop for Sallah.

“Before now, my problem was raising the money to complete payment, but now with the situation in the region, I don’t know what to do.”

Another intending pilgrim in the Agege area of Lagos, Mrs Ramat Abdullahi, said she had decided to postpone her trip due to safety concerns linked to the regional crisis.

“This would have been my first time performing Umrah, but with the situation in the region, I decided to postpone the journey until next year,” she said.

Speaking with Saturday PUNCH, an Islamic cleric and founder of Almuhsinoon Islamic Centre, Manchester, UK, Munir Hussein, who has been facilitating Umrah trips for Muslims, said four of his team members in Nigeria could not make it to this year’s Umrah as a result of the war.

See also  Tinubu reinstates Fubara after Emergency Rule

“I was meant to leave here (UK) on Monday, but we couldn’t go because the UK government issued a travel alert. Four members of my team are also in Nigeria; they were to leave on March 6, but that is no longer possible. Everything was set for our trip, but here we are.

“The airlines we were to use are asking us to reschedule, so there will not be any refund from their end. Hotels are offering zero refunds. Our losses are in many dimensions, including visa, flight, accommodation and food that had been fully paid,” he added.

Oyo businessman trapped in Mecca

Speaking with Saturday PUNCH via telephone from Makkah, an Oyo State-based businessman, Alhaji Ishola Abdulmalik, said the tensions in the Middle East had disrupted his usual Ramadan travel schedule.

“I come to Saudi Arabia every year when Ramadan is five days old and usually return to Nigeria around the 15th day to participate in my town’s annual Ramadan programme as the chairman of the organising committee. I then return to Saudi Arabia on the 25th day of Ramadan and come back home on Sallah day.

“This year, I cannot follow that routine because of the situation. Although I am stranded here because travelling has become difficult, there is no tension in Saudi Arabia. There are no restrictions and we are observing our worship normally,” he said.

Abdulmalik explained that Saudi Arabia had not shut its airspace and commercial flights were still arriving in the kingdom, but disruptions at major international transit hubs had made it difficult for many pilgrims to travel.

“I can’t leave not because Saudi Arabia has closed its airspace, but because disruptions at major connection hubs have affected travel arrangements,” Abdulmalik added.

He also revealed that some Nigerian pilgrims whose flights were cancelled were struggling to cover accommodation costs.

“There are people here, including a couple from Niger State, whose Qatar Airways flight was cancelled and they couldn’t afford to continue paying for their hotel. I had to help them settle it.

“There are others that some of us who are a little buoyant have had to support by contributing among ourselves to pay their hotel bills,” he said.

Both Emirates Airline and Qatar Airways have yet to respond to messages sent to their emails as of the time of filing this report.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

NNPC eyes $60bn investment, targets 600tcf in new master plan

Published

on

The Nigerian National Petroleum Company Limited (NNPC) has unveiled plans to grow Nigeria’s gas reserves from 210 trillion cubic feet (tcf) to 600 tcf, while attracting approximately $60 billion in investments into the sector.

According to NNPC’s X handle on Friday, the disclosure came from NNPC’s Executive Vice President for Gas, Power & New Energy, Olalekan Ogunleye, during the CERAWeek energy conference by S&P Global in Houston. Speaking on a panel titled “The New Gas Order: Market Depth and the Reshaping of Global Trade”, Ogunleye emphasized Nigeria’s strategic position in the global gas market.

“With the ongoing Strait of Hormuz shipping constraints stemming from geopolitical tensions in the Middle East, Nigeria is uniquely positioned to become a major supplier of LNG and gas-based industries,” Ogunleye said. “Our abundant gas resources, combined with our proximity to key markets, give Nigeria a competitive advantage in the global energy landscape.”

Ogunleye outlined the key deliverables of the NNPC Gas Master Plan, noting, “We aim to move Nigeria’s validated gas reserves from 210.5 tcf to an estimated potential of 600 tcf.”

“Our goal is to increase gas production volumes from 7.4 billion standard cubic feet per day (bscfd) to 12 bscfd by 2030, exceeding the Federal Government’s mandate for 62% growth.”

“We are committed to attracting $60 billion in additional investments into the gas sector through commercial incentives and strategic partnerships,” Ogunleye averred.

He stressed that the Gas Master Plan is grounded in disciplined execution rather than ambition alone. “This plan is neither aspirational nor theoretical.

See also  Soludo closes Onitsha market for one week, see why

“Its success depends on applying execution discipline to our annual work plans to ensure we meet—and surpass—our gas development growth targets,” the executive vice president for AGS, power & new energy said.

With these strategic moves, Nigeria is positioning itself to play a more significant role in global LNG supply and the gas-based industrial sector, leveraging both its natural resources and geographic advantage.

punch.ng

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

Continue Reading

Business

Blackouts cost Nigeria N40tn yearly – Report

Published

on

Nigeria loses about N40tn annually to poor electricity supply, the Nigerian Independent System Operator, an agency of the Federal Government, has said, warning that unreliable power remains one of the biggest constraints to economic growth, industrial productivity, and job creation in the country.

The system operator noted that persistent outages continue to impose high costs on businesses and households, many of which are forced to generate their own electricity.

According to the organisation, reliable electricity remains one of Nigeria’s most important economic priorities, stressing that power outages cost Nigeria up to $29bn annually.

Converted at the prevailing exchange rate of N1,385 to a dollar, this translates to roughly N40.1tn in yearly losses to the economy. The operator added that the burden extends across all sectors, stating that businesses, manufacturers, and households spend billions each year generating their own electricity.

“Reliable electricity is one of Nigeria’s most important economic priorities. Power outages cost Nigeria an estimated $29bn annually. Businesses, manufacturers, and households spend billions each year generating their own electricity,” the system operator said in its latest industry report.

It emphasised that a stable power supply would unlock economic opportunities, noting that “a stable national grid unlocks economic growth, industrial productivity, and job creation”.

Despite the huge demand, the organisation said Nigeria generates significantly more electricity than is ultimately delivered to consumers due to structural bottlenecks across the value chain.

It disclosed that Nigeria generates approximately 45,000 to 50,000 megawatts of electricity daily, but the grid only takes 5,000 megawatts, which is about 10 per cent of total generation. “Nigeria generates approximately 45-50 GW of electricity daily, far more electricity than the grid can deliver. Yet only about 5GW currently reaches the national grid,” it said.

The operator attributed the shortfall to multiple challenges, saying, “The gap reflects constraints across the value chain, including transmission capacity limitations, distribution network constraints, and gas supply disruption.”

To address these issues, the system operator outlined its responsibilities, noting that NISO’s mandate is to strengthen grid reliability and accountability. It added that its duties include enforcing the national grid code, strengthening system dispatch and reliability, improving sector transparency and accountability, and supporting coordination across the electricity value chain.

See also  Nigeria exits global money-laundering watchlist

The organisation stressed the urgency of reforms, stating that a stable national grid is essential for Nigeria’s economic future. It also quoted its board chairman, Adesegun Akin-Olugbade, as saying, “Electricity is, after all, a 19th-century technology, and we do not need rocket scientists to fix these problems.”

Making recommendations, the operator said the way forward is to digitalise the grid, strengthen infrastructure, diversify the energy mix, and enforce grid code compliance.

On the feats recorded in the past year of NISO’s creation, the organisation pointed to ongoing improvements in transmission infrastructure, noting that 82 new power transformers were commissioned between 2024 and 2025. It added that 8,500+ MVA additional transformer capacity had been added, while over 30 transmission projects were completed.

According to the operator, the national grid wheeling capacity now stands at approximately 8,700MW. The organisation further disclosed that the grid had recorded operational milestones in recent years, including a 5,802MW all-time peak generation in March 2025, a 129,370MWh record daily energy delivery, and 421 consecutive days without grid collapse during 2022–2023.

“These milestones demonstrate the potential of the system when operating conditions align,” it said.

The agency also highlighted progress in grid digitalisation through the SCADA/EMS programme, stating that there had been a “$1.16bn investment in grid digitalisation,” with over 3,000 kilometres of fibre optic network deployed and more than 100 substations equipped with SCADA technology, adding that the project had reached approximately 69 per cent completion.

It emphasised that improved monitoring would strengthen operations, noting that real-time monitoring enables faster decision-making and improved grid stability. The operator reiterated that bridging the gap between generation and delivery remains critical, stressing that Nigeria generates far more electricity than consumers receive, while transmission, distribution, and gas supply challenges continue to limit the amount of power that reaches the grid.

As Nigerians continue to grapple with widespread power outages blamed on gas constraints since the beginning of the year, the Transmission Company of Nigeria blamed multiple factors for low allocation, including generation companies’ output and requests by the DisCos. TCN said electricity load allocation to distribution companies is determined mainly by their daily requests.

See also  FG slammed as medical tourism hits $550m annually

So far, power generation has fallen far below 4,000MW, limiting the capacity of DisCos to supply electricity to their customers. Our correspondent reports that data from TCN’s distribution load profile as of 25 March 2026 showed that a paltry 2,908 megawatts was allocated to the 11 distribution companies.

While Nigerians experience persistent outages, several distribution companies keep apologising to customers and attributing the situation to reduced generation caused by gas constraints. The Minister of Power, Adebayo Adelabu, also apologised on Tuesday, acknowledging the disruptions and assuring Nigerians that efforts were ongoing to stabilise supply in a few weeks.

The minister attributed current blackouts to gas supply constraints affecting 75 per cent of Nigeria’s gas-fired plants. “Even the best turbines cannot operate without raw materials. Global gas shortages due to the Middle East crisis, local supply obligations, outstanding payments to gas suppliers, and pipeline repairs have all contributed to the recent decline in generation,” he said.

According to him, only two out of 32 power plants currently have firm gas supply contracts, while the rest rely on irregular supplies on a best-effort basis.

Experts speak

A Professor of Energy, Dayo Ayoade of the University of Lagos, blamed corruption and poor governance for the country’s electricity woes. According to him, the economy will continue to lose money and will not develop “provided we don’t take control of the power sector”.

Ayoade said the economy will continue to suffer because self-generation is too costly for the common man and small businesses.

“Until the power sector is put right, the economy will continue to suffer, Nigerians will continue to suffer, and there is no way out of this. Self-generation doesn’t work because it’s inefficient. The kind of resources you need to generate power, like gas, are out of the hands of private individuals or companies. So, it is very important that the government takes the lead on this,” he stated.

See also  FG disburses N2.45tn to states for infrastructure, security

The professor said the way forward is for the government to undertake holistic reforms of the sector, calling for the removal of electricity subsidies.

“That reform requires us to tell one another the truth. Nigerians will have to pay more money for power. Tariffs must reflect the cost of delivering electricity. Also, creating new institutions like GAMCO and others all the time means there is a proliferation of institutions in the sector. We need to streamline the sector; we need to control corruption,” he said.

Ayoade added that governance is key to the power sector. “One of the reasons the sector is not working is poor governance. Billions of dollars were spent on power in the past with no appreciable electricity. We can’t continue down that way. There are too many loopholes and leakages. We have to address this,” he submitted.

The convener of PowerUp, Adetayo Adegbemle, reiterated that the sector is bleeding because bulk power users have exited the grid, making cost recovery a burden. He said operators may not be able to boost power generation in the face of low recovery.

“We have allowed the big consumers to escape the national grid, pushing the load of sustaining it onto residential consumers. The tariff becomes more expensive for them, while producers continue to seek alternatives, albeit more costly. The Federal Government should, as a matter of urgency, reverse this trend to boost power supply,” he said.

Adegbemle also noted that the electricity subsidy is no longer sustainable, saying the government ought to have found a way out of the burden. He emphasised that the subsidy affects the entire value chain, as the Federal Government has failed to fulfil its subsidy obligations.

punch.ng

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

Continue Reading

Business

CBN blacklists top loan defaulters

Published

on

The Central Bank of Nigeria (CBN) has officially restricted banking services for “chronic defaulters” and large-ticket obligors with non-performing loans.

In a sweeping move to enforce credit discipline and safeguard the nation’s financial system, the apex bank issued a policy statement on Wednesday following remarks by CBN Governor Olayemi Cardoso at the 4th Annual IMF/AFRITAC West 2 High-Level Executive Forum in Abuja.

The Governor made it clear that the era of regulatory forbearance for delinquent borrowers is over.

He emphasised that the bank is shifting toward a more aggressive stance on corporate governance to ensure that the N4.61tn in new capital recently attracted by the banking sector is protected from systemic abuse.

“Our stance on corporate governance is unequivocal: zero tolerance for violations. By ending years of regulatory forbearance, we have reinforced accountability, tightened supervision, and elevated compliance standards across the sector,” the Governor stated.

The new directive specifically targets “large-ticket obligors”, individuals or entities with significant outstanding debts classified as non-performing in the Credit Risk Management System. Under the new rules, these defaulters will be barred from accessing not only fresh credit but also essential contingent liabilities and trade instruments.

“We have implemented a restriction of banking services to non-performing large-ticket obligors. This decisive step underscores our commitment to credit discipline, financial integrity, and accountability,” the statement read.

According to the CBN, the move is designed to instil a “culture of repayment” that has historically been lacking among high-profile borrowers. By cutting off access to instruments such as letters of credit and performance bonds, the regulator aims to prevent “credit jumping”, a practice where defaulters migrate between banks to accumulate more debt.

See also  Tinubu reinstates Fubara after Emergency Rule

“By curbing access to banking services for chronic defaulters, we are reinforcing the culture of repayment, protecting depositors, and safeguarding the stability of the financial system,” the apex bank added.

Beyond the crackdown on debtors, Cardoso reaffirmed that the CBN remains firmly committed to orthodox monetary policy. This approach prioritises price stability and the use of traditional tools to anchor inflation expectations, moving away from unconventional interventions to restore confidence in the naira.

“The CBN remains firmly anchored in orthodox monetary policy, focused on restoring price stability, strengthening policy credibility, and anchoring expectations through discipline and consistency,” the statement concluded.

For years, the Nigerian banking sector has struggled with “chronic defaulters”, wealthy individuals or massive corporations that borrow billions and fail to repay.

These are often referred to as “large-ticket obligors”. When these loans go bad, they threaten the liquidity of banks and the safety of ordinary citizens’ deposits.

Under the leadership of Cardoso, the CBN is pivoting toward “Orthodox Monetary Policy”. This means moving away from the era of massive development interventions and direct lending to sectors like agriculture and focusing instead on its core mandate: price stability and financial system regulation.

punch.ng

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

Continue Reading

Trending