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Invite us to defend Hajj savings scheme – Commission
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Senate is either ignorant or doing someone’s bidding – Bugaje
There is palpable anxiety over attempts by the Nigerian Senate to amend the National Hajj Commission of Nigeria (NAHCON), Establishment Act 2006. The Senate is making a move to domicile all funds accruing to the Hajj Saving Scheme in the Central Bank of Nigeria.
The Hajj Saving Scheme is established, supervised and regulated by NAHCON and the funds are domiciled in Jaiz Bank; a Sharia-compliant commercial bank in Nigeria.
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Daily Trust reports that the Senate had last week passed for second reading a bill sponsored by Senator Ibrahim Danbaba (Sokoto South), which also seeks to prohibit NAHCON from using funds accruing to the scheme for its operations while restricting the activities of the commission to its regulatory and coordinating functions as it relates to the conduct and operation of hajj and lesser Hajj (umrah) in Nigeria.
The senate had said the amendment was necessary in order to protect the interest of the scheme’s subscribers and also prevent the diversion of the funds for other purposes. This was coming just weeks after the House of Representatives asked NAHCON to suspend further implementation of the Hajj Saving Scheme pending the investigation of the scheme by its committee on Hajj Affairs.
The recent direction of the National Assembly was, however, received with mixed feelings even as over 4,000 Nigerians have already enrolled in the Hajj Saving Scheme since it was introduced in 2020 following an agreement between NAHCON and Jaiz Bank Plc.
The scheme, which provides a platform for intending pilgrims to plan gradually through a long-saving platform for pilgrimage had in March accrued over N1billion in which Jaiz Bank paid out N50million profit to account owners and stakeholders.
Invite us to defend scheme – NAHCON
With the recent moves by the Senate, NAHCON says the senate is operating under misinformation as to the objective and aim of the scheme. Speaking with our correspondent, the National Coordinator of the saving scheme, Dr Aliyu Tanko described as unfortunate that the senate committee would discuss anything on the scheme without inviting the commission to explain its operations.
He faulted the suggestion to move the scheme to CBN saying “CBN is not a commercial bank and this is a saving that you want to grow. It means you can only deposit there and leave it for the number of years it will take but without any gain for the pilgrim.”
“It’s just like the money deposited with the states for the last two years, there was no value added to it after it was kept for two years. But in this system, if you deposit today, by the next month you will see your money and the profit within the period, no matter how small it is,” he said.
Daily Trust reports that the National Hajj Commission of Nigeria Establishment Act 2006 had repealed the Nigerian Pilgrims Commission Act Cap. 321 Laws of the Federation of Nigeria 1990. The act had charged NAHCON with the responsibility of licensing, regulating, performing over-sight and undertaking supervisory functions over agencies, and other bodies engaged in organising and coordinating the movement of Nigerians for Hajj and Umra, as well as providing accommodation, transportation and other services related to the performance of the Hajj and Umra to pilgrims in Saudi Arabia.
Section 7 of the Act gives powers to the commission to establish, supervise and regulate a system of Hajj Savings Scheme to be operated by the Pilgrims Welfare Board of each state and the Federal Capital Territory for interested intending pilgrims.
Seen as a golden opportunity to encourage mostly low income intending Muslim pilgrims to save for Hajj, Idris Salihu, a Kaduna-based banker said he had been reluctant to save for Hajj in any of the country’s conventional commercial banks to avoid his funds being adulterated by riba (usury or interest).
“When you take the scheme to CBN, then the aim is defeated. It is either our money will stay there, stagnant without any growth or there will be interest, which is what every Muslim is trying to avoid. I enrolled last year because Jaiz Bank is sharia-compliant and with the hope that my Hajj, In Shaa Allah will be Mabrur (Accepted Hajj),” he said.
Salihu, who is hoping to perform Hajj in 2023 further said: “Hajj is ordained by Allah and Allah has condemned anything that has to do with riba and Allah has said actions are judged according to intentions. I have always wanted to go for Hajj but didn’t have the money, this system has now provided me with the opportunity to save little by little and even if I die before then, the intention is there and I believe Allah will reward me,” he said.
Another account holder told Daily Trust that the profit accrued from the investment is shared according to account holders, NAHCON, State Pilgrims Welfare Board and Jaiz Bank adding that the account holder is entitled to 40per cent of the profit. “As I speak with you, there is a system that automatically translates your profit to you and you have your log in details to check the progress of your funds,” he said.
However, following fears that NAHCON could dip its hands into the funds as insinuated by the Senate, Dr. Tanko said the allegation was untrue and challenged the Senate to prove it. “Nobody is touching the funds and we are ready to show this. As far as the commission is concerned, it does not hold a single kobo of any pilgrim, the money is in the system after the account holder enrolled,” he said.
Speaking on how the scheme has revolutionised Hajj operations, the Kogi State Hajj Commission described the Hajj Saving Scheme as one of the best things that has happened to the industry. “It comes with transparency, accountability, ease and gain,” said Husseini Obadaki, Head of Administration, Kogi State Hajj Commission.
“The moment someone touches the funds in your account, you will see it as feedback, unlike before where pilgrims deposit their money and they don’t know or see what happens to it. Because of the transparency and accountability, every depositor sees what accrues to the scheme and unlike before where the money deposited does not come with any benefit, now, with the scheme and partnership with Jaiz Bank, your deposits enhance overtime,” he said.
He further explained that the scheme operates a queue system adding “When you enroll, it is automatically captured online and the next person who enrolls, queues behind you and that is how it goes, it is on first come basis.”
He said the scheme’s benefits are three folds; “It brings benefits to Hajj administrators, to the depositors and it adds value to the economy of the nation. Now that some people are saying they want to move it to CBN, we don’t know what informed that decision, we are waiting for them to enlighten us as to why all of a sudden, all these benefits we are enjoying now will be moved to the CBN. We believe that before such a move is concluded, they will organise a hearing and stakeholders will be given the opportunity to listen to those making such proposals and we will also make our own informed contributions.”
Senate either ignorant or doing someone bidding – Dr Bugaje
Speaking on how the scheme would impact the Nigerian economy, the Convener of the Arewa Research and Development Project, Dr. Usman Bugaje said the scheme is in line with many federal government policies like financial inclusion, which the CBN has been trying to achieve as well as creating a whole economy around hajj. “What it means is that people in millions will now open accounts, they will be included financially because they will be able to do the online transaction and save money. And that money they are saving is not to sit in one place, it is supposed to be deployed into money-making ventures like safe risks just like we do with pension funds,” he said.
While also kicking against the bill by the National Assembly, Bugaje, who was instrumental in the enactment of the NAHCON Act said it appeared the Senate was either uninformed or doing the bidding of someone of some group. “My worry is that it is either the Senate is ignorant of the whole issue about the Hajj Saving Scheme, they may not have taken the time to study the whole programme or it is doing somebody’s bidding. I am not sure which of the two but clearly, after what happened in the Senate, I am not sure whether they understand the whole objective and philosophy behind the Hajj scheme,” he said.
He said should the Senate house the saving scheme in the CBN, the money will be safe but cannot grow and urged them to read on Tabung Hajj Malaysia or hajj in Turkey or Indonesia to understand how a whole economy is built around Hajj and how those countries have grown into a large economy with a bank of their own and a very rich cooperative. “So, when people put their money there, they get a good return, it will grow and it is your savings and it is being managed according to Sharia.”
To design the NAHCON Act that gives life to the saving scheme, Bugaje explained that Nigeria had followed the Malaysian model known as Tabung Hajj, which was modified to suit the Nigerian context. He said Tabung Hajj and the Indonesian Hajj Commission had through their schemes bought properties in Saudi Arabia. “They don’t rent during hajj, it’s their property but off hajj and Umrah, they rent it out to others and they make huge sums.
He stressed that any attempt to move the scheme to CBN would be viewed as an act of sabotage of a project, which has been carefully selected and designed to create a whole economy around Hajj. “This is a project, which will provide jobs and ability for people to put in their money to grow and they will continue even after the hajj. The amendment will also destroy the rate of financial inclusion,” he said.
