On stoppage of Hajj Saving Scheme

The National Hajj Commission of Nigeria (NAHCON) set to implement the Hajj Saving Scheme (HSS) after securing presidential approval. An operation that seemed to have the blessing of the National Assembly and state pilgrims welfare boards/agencies a few months ago, but it is now back on the table due to resentment of some state Hajj officials, banks and some stakeholders.

The leadership state Muslim pilgrims boards never missed an opportunity in their private or public comments to take on NAHCON on HSS.

HSS is a contributory saving system which enables intending pilgrims to pay installmentally to achieve their objectives of travelling for pilgrimage.

Nigerian Muslims like their counterparts all over the world are desirous to make the rewarding journey to Makkah and Madina for which many are constrained by lack of funds. After several years of research, the idea of HSS was mooted, patterned along the Malaysian Tabung Hajj that has become reference point for national economy of the South-East Asian country. The HSS was meant to bring succour to the teeming Nigerian Muslims intending to perform the annual holy pilgrimage without having to sell off their properties, borrow or to depend on wealthy family or relatives for sponsorship. The scheme gives room and opportunity to every Muslim to see himself/herself as prospective pilgrims.

The scheme can also boost the GDP for the nation’s economy, create employment and poverty reduction and some other multiplier effect.

Considering the success of the Malaysian Tabung Hajj and how it has helped grow the economy of that country in the last four decades, NAHCON took the first step and convened a meeting with 25 banks in the country of which JAIZ Bank became successful, being the only Islamic bank at the time that operates non-interest banking and promotes investment in only Halal business. Hence, a memorandum of understanding was signed with the entity which culminated in the joint-operation and launch of the Hajj Saving Scheme in October, 2020, in Kano. It was attended and witnessed by the leadership of the Forum of State Chairmen/Secretaries of State Pilgrims Welfare Boards/Agencies/Commission.

At the launch, it was stated that the scheme would become fully operational in 2022, thereby offering a two-year moratorium in which the previous scheme of Pay-As-You-Go or the cash and carry would be jettisoned.

Since the official launch of the scheme in October, 2020, NAHCON`s role has been limited to issuing policy instrument, monitoring and supervision for which JAIZ Bank runs the operation. It should be mentioned that JAIZ Bank became the joint promoter of the scheme due to the CBN refusal to grant NAHCON operating license. Instead it granted her a Special Multi-purpose Vehicle instrument/window to run the scheme in collaboration with licensed financial institution.

This bank-led scheme since its inception has shown enough glimpse of the benefit that would accrue to everyone including the SMPWBs, intending pilgrims, NAHCON and the country at large. As at March 2022, the 4,000 enrollees in the scheme have had their accounts credited with the profits generated under just one year, while those who had their initial deposits for the 2020 and 2021 Hajj with the state pilgrims welfare boards have not enjoyed that privilege.

Section 7 (1) of NAHCON Establishment Act, 2006, says “the commission shall establish, supervise and regulate a system of Hajj Saving Scheme to be operated by the Pilgrims Welfare Boards of each state and the Federal Capital Territory (FCT) for interested intending pilgrims.” (2) “The commission shall set up a Board of Trustees for the saving scheme comprising men of high integrity who are not members of the commission and may as well, take such other measures as are desirable for the success of the scheme.”

From the foregoing, the commission is empowered and legally mandated to establish and operate the Hajj saving scheme. Perhaps, the reasons the SMPWBs do not want the full implementation of the scheme might have to do with the fear that they may be kicked upstairs (made irrelevant) with the operation of the scheme. But on this ground, NAHCON has made efforts and held meetings to clear the misconception and to negotiate, but they seemed not too convinced that their role won’t be passive, especially with the granting of presidential approval for the scheme to operate full blast in the 2022 Hajj.

It has been stressed at the negotiating table that the SMPWBs would still retain the power and administration of pilgrims who choose their state that certain percentage of pilgrims deposit would still accrue to the states to take care of their administrative and sundry expenses.

What is clear from the attitude and opposition to the scheme is the pessimism that always accompanies new innovation. It is perhaps the fear of states officials that their duties would be taken over from them. If that seems sentimental, it is a view still held by those who witnessed the unfolding event. But it must be noted that not all wishes can be fulfilled.

The leadership of NAHCON has always had confidence in the two arms of the National Assembly, especially the House Committee on Pilgrimage and the Senate Committee on Foreign Affairs who are mostly consulted and carried along in many of the commission’s policy’s and decision-making.

The allegation of corruption against the commission and directive to suspend the HSS came far short of expectation. To begin with, it is a wrong notion that the Hajj Saving Scheme started in 2006. The scheme took off after its official launch on October 20, 2020, in Kano.

It would be disruptive of the arrangement and timeline set for the full implementation of the scheme which Mr. President had granted when it became obvious that the 2020 and 2021 Hajj would not hold.

Moreover, it should be stated that the profits accrued to the 4,000 enrollees is not domicile with NAHCON but paid into the accounts of intending pilgrims.

What one expected from the law makers was to have called for investigation into the operation of HSS before hitting the gavel. Nigerians and participants have had a positive assessment of the scheme which needs be strengthened rather than suspended.

What many expected from NASS is for them to serve as an ice-breaker between the parties and not act as crowd-pleaser. That would have helped them to establish the working of HSS instead of acting on hearsay.

Ubandawaki is a staff of Information/Publication Division, NAHCON, Abuja.