MANAGEMENT OF ISLAMIC COOPERATIVE
SOCIETY: BY ADIO ABDULRASAQ AT A
WORKSHOP ORGANISED FOR MEMBERS OF
CRESCENT COOPERATIVE SOCIETY BY ELANSAR MULTIPURPOSE COOPERATIVE
SOCIETY LIMITED NATIONAL HOSPITAL
ABUJA AT NICOMSAT OFFICE AIRPORT
ROAD ABUJA ON SATURDAY 13TH APRIL,
2013
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Management simply means getting things
done through people or
Effective and efficient use of resources to
achieve organizational goals
Management of Islamic cooperative society is
the application of management principles and
functions to the running of the society in line
with the Islamic tenets.
Adio Abdulrasaq, el-Ansar
Multipurpose Cooperative Society,
Nat. Hosp. Abuja
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The concepts of Islamic cooperative are
mutual understanding and agreement
respect and concern for others
dependence on the pool of members’
contributions
secure individual’s financial autonomy
Safety and welfare of members
Adio Abdulrasaq, el-Ansar
Multipurpose Cooperative Society,
Nat. Hosp. Abuja
 Islamic
Cooperative Society must
think about the permissibility of
the project/business in the light
of Qur’an before making any
investment
 ultimate goal of the society is to
help members and to ensure
value of self help and self
responsibility (brotherhood)
Adio Abdulrasaq, el-Ansar
Multipurpose Cooperative Society,
Nat. Hosp. Abuja
 Social
and economic justice to the
society
 Justice, Fairness and equity
 Cooperation and Partnership
 Promotion of socio-economic well
being of members; a feat which a
single individual working alone
cannot achieve.
Adio Abdulrasaq, el-Ansar
Multipurpose Cooperative Society,
Nat. Hosp. Abuja
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Planning-long and short term
Organising-departmentalization
Coordinating-teamwork/team spirit
Controlling-all resources-staff, deposits,
withdrawals, income, expenditures etc.
Staffing-human capital-qualified and right
staff
Budgeting-appropriation
Communicating-top-down-top: Public
Relation-image making, grape vine
Monitoring and evaluation-service delivery
Adio Abdulrasaq, el-Ansar
Multipurpose Cooperative Society,
Nat. Hosp. Abuja
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Coordinate activities and assign overall
responsibility
Hire, train, and deploy the right personnel
Create clear reporting lines between the staff,
members and senior management
Communicate the strategy internallystrategic information only available to
authorized people
Develop and maintain a stakeholders
database
Adio Abdulrasaq, el-Ansar
Multipurpose Cooperative Society,
Nat. Hosp. Abuja
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Develop and maintain a commitments registers
Stay in control of “third-party” engagement
Manage buyers and investors risks
Track changes in the quality of stakeholders
relationships-price regime, withdrawals,
deposits
Stakeholder engagement should be managed as
one would manage any other business
function.(stakeholders: members, executives, staff,
suppliers, buyers, regulators, institution
management)
Adio Abdulrasaq, el-Ansar
Multipurpose Cooperative Society,
Nat. Hosp. Abuja
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involves listening and responding to concerns
and suggestions, qualities to look for include:
good people and communication skills
a good understanding of the internal and
external socio-cultural/politics
open-mindedness and respect for the views of
others
a solution-oriented approach to all issues
a high integrity/degree of trustworthiness
a genuine commitment to the position and its
goals
Adio Abdulrasaq, el-Ansar
Multipurpose Cooperative Society,
Nat. Hosp. Abuja
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Duties and responsibilities
authority to negotiate on behalf of the society
clear reporting structure and clarification as
to which decisions they can take unilaterally,
and which ones are to be passed on to higher
levels within the society
Strategic information management
a genuine commitment to the position and its
goals
Adio Abdulrasaq, el-Ansar
Multipurpose Cooperative Society,
Nat. Hosp. Abuja
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Society/members relationship
Identification and effective control of
potential risks
Team building around risks management
Keeping track of activities in order to reduce
inefficiencies, confusion and conflicting
messages or commitments.
a high integrity/degree of trustworthiness
Adio Abdulrasaq, el-Ansar
Multipurpose Cooperative Society,
Nat. Hosp. Abuja
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Loan administration is an important aspect of
cooperative activities and as such a serious
attention needs to be paid to it.
Requests for loan need to be controlled
because of its attendance effects on the
smooth running of the society.
Members should be educated on the need to
always request for loan for projects that have
direct benefits on their life and family. Those
without positive project in their life should be
discouraged from taking the loan for fun
Adio Abdulrasaq, el-Ansar
Multipurpose Cooperative Society,
Nat. Hosp. Abuja
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Cooperative loans are not like bank loans, the
following are some of the conditions
required:
Membership of the cooperative society for
specified period e.g. 6 or 9 months
Must be contributing into savings accounts
Must have ability to pay back
Must fill appropriate form and pay required
fees
Must have credible guarantors
Adio Abdulrasaq, el-Ansar
Multipurpose Cooperative Society,
Nat. Hosp. Abuja
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Loan is not a right of any member-lender and
borrower should agree with the terms and
condition of the loans
Loan granted is drawn from the pool and is
not individual’s money-should be paid back
Beneficiary of loan should be a financial
members of the society
Loan granted will be paid back within
specified period, usually 12 months
Adio Abdulrasaq, el-Ansar
Multipurpose Cooperative Society,
Nat. Hosp. Abuja
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Application for loan shall be made on
appropriate loan application form, duly
completed and signed
Loan granted shall be interest-free
Treatment of loan shall be on first come, first
serve basis
Loan granted shall be used for halal and
productive ventures. etc
Adio Abdulrasaq, el-Ansar
Multipurpose Cooperative Society,
Nat. Hosp. Abuja
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Formal application-collection and payment
for loan form
Submission of duly completed loan
application
Screening of loan application by loan
committee
Recommendation/authorization to grant loan
Approval of loan
Payment of the loan through recovery form
Adio Abdulrasaq, el-Ansar
Multipurpose Cooperative Society,
Nat. Hosp. Abuja
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Loan granted is paid back within 12 or more
months equal parts
Usually there is a one month moratorium
Completion and duly signed of loan recovery
form
Ensure repayment commence and completed
Confirmation of deduction from accounts
dept.
Updating of loan ledger monthly
Adio Abdulrasaq, el-Ansar
Multipurpose Cooperative Society,
Nat. Hosp. Abuja
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Sureties sign bond to pay in case of default
Members who are indebted to the society not
qualified
Member standing as surety in a loan yet to be
liquidated up to 90% cannot stand in another
loan
One person cannot guarantee loan for more
than 2 persons, such person should be
financially sufficient to defray the two loans
Adio Abdulrasaq, el-Ansar
Multipurpose Cooperative Society,
Nat. Hosp. Abuja
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Loan granted should be monitored to ensure
that they are used for legitimate, halal and
productive projects/programs.
It is the responsibility of the loan committee
to educate members on how to make good
use of the loan being granted
Make regular contacts to members loan were
granted-visit and inspect the project e.g.
Farm, block making industry, provision store
etc
Adio Abdulrasaq, el-Ansar
Multipurpose Cooperative Society,
Nat. Hosp. Abuja
The society has right to recall loan
granted if:
 There is prove of misappropriation of
the loan
 Member withdraws his membership
 Society expel and revoke his
membership
 There is persistent defaults in
repayment
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Adio Abdulrasaq, el-Ansar
Multipurpose Cooperative Society,
Nat. Hosp. Abuja
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This should be set to:
Ensure stability of the pool
Allow everybody to draw from the pool
Depending on the availability of resources,
the limit can be 150%, 200% even 300%
Ensure easy repayment and benefit of more
members
Studying and monitoring of frequency of loan
requests will guide the society in setting the
credit limit.
Adio Abdulrasaq, el-Ansar
Multipurpose Cooperative Society,
Nat. Hosp. Abuja
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The committee is responsible for collating
and screening of loan request applications
Meeting monthly to treat loan issues
Recommend/authorise all loans for approval
and payment.
Recommend refund of target savings
Monitor repayment of the loan
Prepare report on loan disbursements and
repayment
Adio Abdulrasaq, el-Ansar
Multipurpose Cooperative Society,
Nat. Hosp. Abuja
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Major objective of cooperative society is to
promote socio-economic well being of
members, a feat which a single individual
working alone cannot achieve. It is important
to note that cooperative is not a BANK where
people queue to withdraw money.
Therefore withdrawal of assets should be
discouraged or totally banned.
Adio Abdulrasaq, el-Ansar
Multipurpose Cooperative Society,
Nat. Hosp. Abuja
Thank
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you
for your rapt attention
Adio Abdulrasaq, el-Ansar
Multipurpose Cooperative Society,
Nat. Hosp. Abuja