NASCS NICS is a Cooperative Society for the staff of National Assembly Service Commission, approved by the Commission to operate a non-interest (Islamic) model of finance. Membership is open to all serving and retired staff of the National Assembly Service Commission NASC as well as eligible staff of the Society.

All employees and retired Staff of the NASC are eligible for membership. Also eligible are employees of the Society who indicate interest in becoming members.

Yes, dual membership of both societies is allowed.

To become a member of the Society, one is required to:

• I. Either
• a) Get a copy of membership application form from the Secretary General of the Society.
• b) send us an Email on nascsnoninterestcs@gmail.com and a copy of the form will be sent to you
• II. Application is N2,000. However, every application for membership shall be accompanied with a minimum equity contribution of N20,000. The payment of equity is one-off.
• III. The Management Committee (MC) shall assess all applications for membership and where suitable approve such applications.
• IV. Once admitted into the membership of the Society, a minimum of N3,000.00 for staff on SGL 01 TO SGL 06 AND N5,000 for Staff on SGL 07 to SGL 17 monthly savings deposit must be made by each member.

The equity contribution will provide an equal opportunity for all members to be part of the ownership of the cooperative society and also have it with a robust capital base for investment.

Yes. A member may, subject to the approval of the MC, transfer all or any part of his/her shares or interest in the Society to another existing member or any other person provided that the non- member transferee shall become a member of the Society.

No, a member may not be able to relinquish his shares but may transfer it as explained in “6” above.

The objective of the Cooperative Society is to promote the economic interest of its members by providing them with investment avenues, through ethical, non-interest finance investment schemes It is also intended to provide them with avenues for financing their material needs (through the use of various products such as cost-plus profit sale (murabaha), forward sale (salam), lease (ijara), joint venture partnership (musharaka) etc.), based on mark up, rental, profit share, etc as the case may be.

Also, members would share in the profit made by the Society in the form of dividend based on the number of their shares outstanding at the end of each financial year (though dividend would only be paid to total shares outstanding in the books of the Society 6 months before the end of each financial year). This is in addition to profits realized from the investment of members’ funds outstanding in their investment account at the end of each financial year.

Yes. Membership could be withdrawn subject to the member giving a three (3) months’ notice in writing. Any member who seeks to withdraw his membership without giving the 3 months’ notice or at any date earlier than the 3 months’ notice, shall forfeit any share of profit that may ordinarily accrue to his investment.

It is possible to re-apply and be re-admitted into the membership of the Society; Any past member who exited the Society by withdrawing his membership may re-apply for readmission after an interval of not more than 12 calendar months from the date of withdrawal except where a waiver is granted to the member by the MC.

Yes. Involuntary termination of Membership could be by Death, Permanent insanity/incapacitation or Expulsion is possible.

Yes, a member may be expelled by any one of the following reasons:

• a. Repeated failure to make thrift savings for 3 consecutive months;
• b. Repeated failure to pay any obligation due from him/her to the Society over a period of three (3) months;
• c. Conviction by a court of competent jurisdiction for a criminal offence involving violence, fraud, dishonesty, financial impropriety, etc;
• d. Giving false information to the Society;
• e. Misconduct or other acts contrary to the stated objectives of the Society or any such activities that may cause embarrassment or reputational damage to the Society;
• f. Dismissal by the NASC by reason of a disciplinary action taken against the affected member.

• a. During the phase of registration, every member shall nominate a person to whom his/her shares or savings shall be transferred to in the event of death or permanent incapacitation. The member may, at any point, change this nominee.
• b. The Membership Register shall have provision for the names and addresses of nominees as provided by Members.
• c. In the event that such nominee is not admitted to membership after the death or permanent incapacitation of the original member, he/she shall be paid the value of the share or savings, less any sum due to the Society (including service charge as may be prescribed by the MC).
• d. The Society shall pay all other monies due to the deceased member from the Society to such nominee, heir, legal representative or court of competent jurisdiction as the case may be.

Monthly Contributions can be made through direct deduction Finance and Accoounts Department, or a standing order transfer from a members’ NASC to the Society’s account (in the case of retirees).

It is a method of financing that is based on ethical principles of fairness and justice. Islamic finance is a type of non-interest finance and it prohibits the collection or payment of interest. It also prohibits engaging in activities that are deemed harmful to the society, for example tobacco, alcohol, pork, gambling, pornography, etc. If something is immoral, one cannot profit from it. On the other hand, it allows profit sharing and loss sharing among the counterparties in a trade or financing transaction according to mutually agreed ratios.

a. Transactions are related to real economic activities not speculation. Amounts invested in a non-interest finance transaction are applied to activities like construction of buildings, investing in small businesses, financing farmers to grow crops, consumer products finance, equipment leasing (ijarah, different from conventional leasing), etc.

b. Risk sharing scheme. Profit can only be earned on assets where ownership risk is taken. Under this scheme, profit cannot be earned without taking risk – there are no “free riders”.

c. Transparency and fairness. Counter parties involved must have complete clarity on the terms of the product. There is no room for uncertainty, in order to avoid any form of conflict.

d. Prohibition of interest (riba). Interest is exploitative and unjust and could lead to the widening of the gap between the rich and the poor.

The prohibition of dealings in interest excludes a lot of staff from participating in conventional finance schemes and limits their opportunities for savings and investments. Therefore, non-interest finance provides such people with alternative investment avenues, in addition to the resources available for further investment in the real sector of the economy.

a. Time value of money is the basis for charging interest on capital, while profit on trade of goods or rent, charged for asset use is the basis for earning return.

b. Interest is charged even where the borrower is not making any profit. Therefore, it is not based on a profit and loss sharing model. In non-interest finance profits are shared by all parties. No profit, no return for the financier.

c. Using conventional financing methods for purchase of assets (e.g. car, home financing), the NASC lends you money on interest and you purchase the asset. However, in non- interest finance the financier (in this case the Society) must first take ownership of the asset and then either rent the asset or sell it on to the customer (on a cost-plus basis with deferred payment).

i. Regular Savings: This is based on the principles of Qard (benevolent loan). It would have the following features:

a. It would be a non-profit paying account. That is, it would not entitle its holder to any amount of profit.

b. A maximum of 50% could be withdrawn after given 1-month notice. Special withdrawal (immediate withdrawal) could be approved on need basis. Withdrawal is only allowed once in a year and provided the member does not have any outstanding loan.

c. It would entitle its holder to a Qard Hassan loan equivalent to 200% of the amount outstanding in the account as at the time of applying for the loan, subject to the availability of funds and the approval of the MC.

d. Savings account could only be a maximum of 50% of the total contribution by a member (the remaining 50% or more must be investment).

ii. Target Savings: This is a special deposit outside members’ regular contribution, which could be based on the contract of:

a. Mudarabah which means members would share with NASCS NICS, the net profit generated from the use of their contributions in the ratio of 50:50, however, losses if any is to be borne by the contributor except in proven cases of negligence and breach of contract, in which case NASCS NICS would have to bear the loss; Or

b. Qard (benevolent loan to the Society), in which case the member is not entitled to any share of profit, but his contribution is guaranteed by NASCS NICS.

Target savings could take either one of the following forms:

a. Project Savings

Members could be saving either a fixed or variable amount on a regular basis (at least monthly) with the intention of saving a certain amount towards executing a particular project (e.g buying a house, paying for school fees, etc). The tenor is to be tied to the amount being targeted by the member but cannot not be less than 6 months.

Members could be saving either a fixed or variable amount on a regular basis (at least monthly) with the intention of saving a certain amount at the end of a given period of time (not less than a year).

Features of the Accounts

• For the mudarabah type of target savings, profit generated is to be shared in the ratio of 50:50 between the cooperators and the NASCS NICS while loss if any is to be borne by the cooperators except in proven cases of negligence and breach of contract, in which case NASCS NICS would have to bear the loss.

Members could not withdraw any amount from the account until the target amount or time specified at the beginning of the contract is reached, except on special cases provided a reasonable notice is given. For the mudarabah type of target savings, withdrawal before reaching the target amount or target date would make the member forfeit any share of profit due to him/her.

iii. Investment Account: This would be on the basis of Mudarabah and would have the following features:

a. It could be 100% of the total contribution by members.

b. It entitles members to share of net profit generated from the investment of their funds in the ratio of 50:50 between them and NASCS NICS but does not entitled them to qardul hassan (free loan).

c. Withdrawal could only be a maximum of 50% of total amount outstanding in the account except in dire circumstance based on the approval of the Management Committee. Withdrawal before the end of the financial year would make payment of profit due to the member subject to the discretion of the MC.

1. Murabaha (cost plus mark up financing). Murabaha is a sale contract whereby the institution sells to a customer a specified kind of asset that is already in its possession, whereby the selling price is the sum of the original price and an agreed profit margin.
Murabaha would have the following features:
• i. A member would identify a particular item he/she wishes the Society to buy on his/her behalf (preferably the item should be available in the shop of one of the Society’s authorized/appointed dealers)
• ii. The member would complete a Murabaha requisition form requesting the Society to purchase the identified item on his/her behalf and giving his/her commitment to purchase same from the Society.
• iii. The Society would purchase the item from the dealer and sell same to the member after disclosing the full purchase price and after agreeing on the selling price (which includes the mark up).
• iv. The Society pays the Dealer directly either immediately or on deferred time, depending on the agreement between the Society and the dealer.
• v. The member then pays the Society on a deferred date within a maximum period of 12 months or any period of time as may be determined by the MC from time to time
• vi. A member must have a minimum of 20% of the purchase price in his/her regular savings account.


2. IJARAH (LEASE) It is a contract of lease whereby the lessor leases an asset to the lessee for a specified period of time by paying rentals over the period of the lease contract. The lessor retains the ownership of the asset with all the rights and the responsibilities that go with ownership.

It would have the following features:

• i. A member would identify a particular asset or service he/she wishes to lease from the Society
• ii. The member would complete an Ijarah requisition form requesting the Society to purchase the identified item on his/her behalf and giving his/her commitment to lease same from the Society.
• iii. The Society would purchase the item (asset or service from the vendor) and lease same to the member at a rental fee which would be determined by the MC
• iv. The member would be paying the Society rental fees on a monthly basis over a maximum period of 5 years or any period of time as may be determined by the MC.
• v. A member must have a minimum of 20% of the purchase price in his/her regular savings account.
• vi. The Society could give the member a promise to sell the item to the member (lease) the leased property at the prevailing market price to be agreed at the time of the lease.


3. Musharaka (partnership) This is a partnership between the NASCS NICS and a member where the two contribute money to purchase an asset for the benefit of the cooperator. It would have the following features:
• i. The member identifies an asset and gives commitment/request to partner NASCS NICS to purchase the asset
• ii. The member would complete a requisition form.
• iii. The partner is to contribute at least 20% or any percentage as may be approved of the MC of the cost of the asset to be purchased.
• iv. After purchasing the asset, the society leases its portion of the asset to the member and the member would be expected to be paying monthly rental and part payment of the principal yearly until he/she finishes paying for the asset and must have bought over the portion of the Society.

This is to be used in home financing (for completed houses) purchased by the Society in partnership with member


4. Diminishing Partnership (Musharaka Mutanaqisah) This is a form of partnership between NASCS NICS and a member where the two parties partner to purchase an asset based on a request from the member, with a promise by the member to gradually buy back the share of NASCS NICS in the underlying asset until the asset is completely transferred back to the member. It is to be used mainly for housing finance.

The buying and selling is not to be stipulated in the partnership contract, only the promise to buy back should be contained therein which is independent of the partnership contract.

Features:


• i. A member identifies a property and request NASCS NICS to partner with him to purchase same.
• ii. NASCS NICS would authorize the member to act as its agent to negotiate the price of the property on behalf of the two of them.
• iii. NASCS NICS and the member would agree mutually on the percentage of the price that each partner is to contribute towards the purchase of the property which could be in the ratio of 60:40, 50:50, or any percentage as may be mutually agreed and approved by the MC.
• iv. NASCS NICS would authorize the member to undertake the purchase of the property from the vendor (on behalf of the two of them) and record the title (register it) directly in his/her name, but arrange to perfect a lien (implied co-ownership) on the property in favor of NASCS NICS.
• v. In order to protect the property against unforeseen eventualities, takaful (insurance) is to be taken on the property over the life of the property, the cost of which is to be factored in the total cost of the property.
• vi. The member would then offer to buy and NASCS NICS would accept to sell its share/units in the property at the purchase price over an agreed period of time, with an undertaking by the member to repay the purchase price on monthly installments over the agreed period of time until the member acquires the entire share of NASCS NICS in the underlying property.
• vii. Both NASCS NICS and the member would jointly agree on the fair rental value of the property and the member would undertake to rent the portion of the property owned by NASCS NON-INTEREST COOPERATIVE SOCIETY on the agreed rental fee over an agreed rental period.
• viii. The monthly payment paid by the member over the agreed financing period would consists of a portion meant for the purchase of the equity share of NASCS NON-INTEREST COOPERATIVE SOCIETY in the underlying property and an amount equal to NASCS NICS proportional share of the agreed rental value.
• ix. NASCS NICS and the member could agree on any other repayment model that is best suited for them different from the one mentioned in “7” above. For example, they could agree to rental payment be made on monthly basis while repayment of the loan to be made yearly or vice versa.
• x. NASCS NICS and the member are to agree on the amount of the rental payment on yearly basis. In arriving at the yearly rental payment, the factors are to be taking into consideration:
• a. The prevailing market rental rate for properties in the vicinity where the subject property is located;
• b. NASCS NICS’ equity share in the underlying property (which is expected to be diminishing) and the member’s share in the property (which is expected to be on the increase)
• xi. Upon full Repayment of the value of the property, NASCS NICS is to release its lien back to the member, which implies that the ownership of the property have reverted fully back to the member.

NASCS NICS will be managed by active staff of the NASC, who will be members of the MC.

The Society will employ administrative officers who will handle the day to day operations according to the laws of the Cooperative Society and its internal employment policies and procedures.

The Society shall have an Advisory Council (AC) that would be responsible for ensuring that the operations of the Society always conform to the principles of non-interest (Islamic) finance. The AC shall have five (5) members comprising the President of the Society, two (2) members of the Society and two (2) other members who could be external members that are versed in the principles of Islamic Commercial Jurisprudence.

The Annual General Meeting (AGM) has the responsibility of appointing members of the AC based on the recommendation of the MC.

The Society could take takaful (insurance) cover for its financing transactions in addition to taking permissible collateral which could be in the form of putting a lien on the property financed to cater for any unforeseen eventualities.

Yes, the Annual General Meeting shall be held within the first quarter of the succeeding year after the Annual Statements of Accounts have been prepared and approved by the Registrar of Cooperatives.

There should also be Extra-Ordinary General Meeting:

1. An Extraordinary General Meeting may be called at any time by the Advisory Council, a majority of the MANAGEMENT COMMITTEE or on request from the Registrar of Cooperatives or from not less than one-fourth of the Members of the Society.
2. The notice of such meeting shall clearly state the object to be discussed and no other business shall be transacted or discussed therein.
3. Where the Registrar of Cooperatives convenes such meeting, he/she may direct what matters shall be discussed and may not need to give 21 days’ notice as in bye-law 5.4.1 above.

No, it the responsibility for constitution and appointment of MANAGEMENT COMMITTEE members.

There is hereby established under this Bye-law, a body to be known as the Advisory Council (AC) to be appointed by the Members of the Society, sitting in a General Meeting on the recommendation of the MANAGEMENT COMMITTEE MC.

Composition of the Advisory Council

The AC shall consist of minimum of 5 and maximum of 7 members (of which at least one shall be a female) as follows:

1. The President of the Society;
2. Two (2) staff of the Commission who are members of the Society one of which must not be below the rank of an Assistant Director (A/D) and the other below the rank of an A/D;
3. Two (2) persons who are experts in Islamic Commercial Jurisprudence;
4. Provided however that the Advisory Council may consult any other expert when the need arises.