Business

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

Published

7 months ago

March 7, 2026

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.

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.

“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.

“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.

Business

Nigerian states’ revenues rise 93%, but education spending drops — World Bank

Published

17 hours ago

October 9, 2026

Newsbreak365_Admin

The World Bank says Nigeria’s 36 states recorded a 93 per cent increase in revenues between 2023 and 2025 but education received a declining share of the sector’s expenditure.

The bank disclosed this in its latest Nigeria Development Update, which examined how increased public revenues have influenced spending priorities across the federation.

The report was made available to the News Agency of Nigeria by the World Bank in Washington D.C.

According to the report, states’ aggregate revenues rose by approximately 93 per cent in real terms, while expenditure increased by 92 per cent during the period.

The report attributed the improvement partly to exchange-rate reforms, petrol subsidy removal, stronger revenue administration and increased allocations from the federation account.

It said states also benefited from refunds, settlement of longstanding federal obligations, intervention funds, and stronger Value Added Tax collections.

However, education’s share of total state expenditure declined from 14.9 per cent in 2021 to 12.1 per cent in 2025, according to the report.

Health expenditure remained broadly stable at approximately seven per cent, while social protection’s share increased from 1.4 per cent to 4.4 per cent.

The bank said capital expenditure increased significantly, accounting for 61 per cent of state spending, compared with 46 per cent previously.

Transport infrastructure recorded the largest increase, alongside substantial spending on housing, agriculture and other economic investments.

The report quoted Mathew Verghis, the World Bank Country Director for Nigeria, as saying that increased revenues provided the opportunity to improve infrastructure, education, healthcare, and water services.

He said greater spending efficiency, accountability and improved service delivery were essential to ensuring that additional public resources benefited Nigerians.

The bank acknowledged improvements in states’ fiscal reporting, transparency and internally generated revenue.

It, however, stressed that stronger investment in human capital was necessary to translate economic reforms into sustainable employment and improved living standards.

The report also projected average economic growth of 4.4 per cent between 2026 and 2028, subject to sustained reforms and improved service delivery.

It urged federal and state authorities to ensure that increased public revenues translated into tangible improvements in Nigerians’ welfare.

NAN

Source: punchng.com

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Business

Nigeria promotes investment without building production capacity – UNILAG don

Published

17 hours ago

October 9, 2026

Newsbreak365_Admin

A professor of Comparative Political Economy at the University of Lagos, Adelaja Odukoya, has asserted that Nigeria’s economic policies promote investment without sufficiently strengthening domestic production.

Odukoya argued that the contradiction had weakened the country’s productive foundations, with policies encouraging investment and entrepreneurship while failing to create the technological capacity, productive employment and processing industries needed to drive sustainable development.

Odukoya spoke at the maiden edition of the Adeleke University Toyin Falola Annual Lecture, held on Thursday at the Performing Arts Theatre, Adeleke University, Ede.

The lecture had as its theme, “History, Power and Accumulation: Reimagining Africa in the Globally Disorderly Order.”

Odukoya identified several contradictions in the way the Nigerian state manages economic activity.

He said, “The state promotes investment without creating conditions for technological transfer. It encourages entrepreneurship without generating sufficient productive employment.

“It expands primary-product exports while leaving processing capacity undeveloped. It constructs infrastructure without establishing strong linkages with domestic production.”

According to him, the contradictions explain why increased economic activity and accumulation do not necessarily translate into development.

“Accumulation is not synonymous with development,” Odukoya stated.

He argued that genuine development should be measured by the expansion of productive, technological, institutional and human capabilities.

“A country could attract investment, export minerals and agricultural commodities and record economic activity while still failing to build the domestic industries and technological capabilities required for long-term development,” he said.

His argument was echoed by Prof Toyin Falola, who said Africa’s vast natural resources would continue to reinforce dependency unless governments developed the industrial, technological and institutional capacity to transform them into productive power.

Falola said Africa’s resource problem was not simply one of historical exploitation, but also the continent’s failure to convert its resource endowments into power.

“The issue, however, is not just to repeat the history of exploitation. It is more important to know how Africa turns its great resources into power,” Falola said.

He argued that Africa could not afford to remain a spectator as global economic and geopolitical arrangements continued to change, stressing that resource ownership without the capacity to add value would not guarantee influence.

Falola said the continent required a combination of knowledge, government policy and industrial capacity to change its economic position.

“There must be universities that generate new knowledge; there must be governments that translate this knowledge into policies; there must be industries that add value to the continent’s natural resources,” he said.

He added that Africa needed more than improved infrastructure and stronger economies if it wanted to exercise greater influence in the global system.

“The future of the continent will require more than just better infrastructure, improved economies, and more effective political institutions,” Falola said.

Source: punchng.com

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Business

Import waivers, insecurity end two-year agric trade surplus

Published

17 hours ago

October 9, 2026

Newsbreak365_Admin

Import waivers meant to ease hunger and insecurity on farms have led to a deficit, ending a two-year run of surpluses, as Nigeria’s agricultural trade balance swung from a N740.27bn surplus in the first half of 2025 to a N56.13bn deficit in H1 2026, according to agriculture and trade experts.

Recent foreign trade data from the National Bureau of Statistics showed that agricultural exports fell by 33.28 per cent, or N985.14bn, to N1.98tn in H1 2026 from N2.96tn in H1 2025.

Agricultural imports fell by only 8.50 per cent, or N188.74bn, to N2.03tn from N2.22tn over the same period. The gap between the two movements produced a N796.40bn swing in the trade balance.

Nigeria recorded a N365.74bn deficit in H1 2023, when imports of N926.25bn far exceeded exports of N560.51bn. The balance then turned to a N194.92bn surplus in H1 2024 before it widened to N740.27bn in H1 2025.

In separate phone interviews with The PUNCH, Agribusiness experts, including the Chairman of the Lagos Chamber of Commerce and Industry’s Agricultural and Allied Group, Tunde Banjoko, explained that recent government policy led to the shift.

Banjoko said, “Some waivers were given for products like palm oil and rice, and the import tariffs were drastically reduced. It became more favourable for people to import than to patronise local producers.”

He said the waivers on food commodities hurt domestic producers, even though lower tariffs on tractors and manufacturing equipment helped them.

According to Banjoko, “The effect is that our imports will rise above our exports. Second, we will discourage local production. Thirdly, we will be reducing employment, because some factories will shut down if they are not able to compete.”

Banjoko also said weak funding for processors compounds the problem. He said foreign direct investment flows mainly into the capital market rather than into production and processing, so local processors cannot scale.

He urged the Federal Government to speed up the Special Agro-Industrial Processing Zones programme. “We should speed up such projects where we can produce enough for our country and start exporting, not look for shortcuts by reducing prices,” Banjoko added.

Meanwhile, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, identified two major factors behind the deficit. He said the first was the Federal Government’s decision to allow some food imports to tackle runaway inflation.

Yusuf said, “The first is the decision of the government to allow for some food imports as a result of the challenges of food inflation, which at a point was getting almost completely out of hand.”

He added that insecurity worsened the supply gap and cut export capacity, stating, “Insecurity led many farmers to leave their farms. Many of them have ended up in IDP camps, and quite a number have completely abandoned farming.”

He added that farmers cannot export without output. Yusuf said, “You can only export when you have the output.”

Yusuf also said high input costs and falling produce prices have discouraged farming. He said, “Most of these inputs are imported, so the exchange rate situation has seriously affected the cost of inputs, and the prices of produce have gone down.”

He urged the Federal Government to cut the cost of fertiliser, agrochemicals, machinery and improved seedlings. He also called for a minimum guaranteed price for agricultural produce.

Yusuf said, “The government can establish a threshold below which, if prices fall, it will give farmers some compensation. That is the way it is done in many other economies.”

Source: punchng.com

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