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| Mr. Abdullahi Ogli Abubakar, Chairman, and Co-founder of Reliance 360 Ltd |
The Chairman and co-founder of Reliance 360 Ltd, Mallam Abdullahi Ogli Abubakar speak with Semzyblog on the image of the company, prospects, and challenges along the road to making a change in the world of finance and business.
We are legitimate young business visionaries who want to make the world a better place through Islamic finance. We are not fraudsters!
Let us know about you?
My name is Abdullahi Ogli Abubakar, I am a chairman, Board of directors, and Co-founder of Reliance 360 Ltd, the official business brand of Reliance Cooperative Society Ltd. We started this company to change the world and make it a better place through Islamic finance. We observed that the youth were faced with two major Socioeconomic problems. The first is unemployability (i.e graduates that do not have the technical know-how for available jobs) and the second is unemployment (i.e not enough jobs available for graduates).
One of the reasons why we started this company was to solve these problems. As we evolved, our vision became bigger and better, we saw Islamic finance as a tool for solving all socio-economical problems, so we ventured into Islamic finance. We started as a cooperative, people were saving money with us with the intent of getting financing. In turn, we used the money to run the business. Whenever a member needed his/ her savings, we gave them in one week, and for those eligible for financing, we often finance them within a month after their request. Sometimes we even gave instant non-interest loans based on members pressing needs.
As a result of our credibility over time, members kept referring their friends and family to join the cooperative. Over a while, some of our members were requesting that we create an opportunity where they could partner with us on our businesses, share profit, and bear loss with us. As a result of that, we were reluctant at first but after consulting other members and other learned people, we decided to go with that request.
Why were you reluctant at first?
We were reluctant because there’s a lot of skepticism around the sector, and most people are only willing to enjoy profit with you and do not understand that they could bear the loss when the business fails even after they signed the same agreement.
Why did you later consent to that?
We consented as a result of the pressure from the members, and also we saw it as a way of giving our members a halal alternative to doing business.
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What has been your success story so far?
We have over 700 members who have partnered with us, roughly 31.2% have broken even and gotten beyond initial capital, 15.6% have gotten up their initial capital, 13.4% are near to breaking even, and 39.8% are yet to break even at all. In addition, we have been able to finance more than 50 people, help 10 people startup their businesses, and sponsored 5 people on scholarships. During Ramadan in 1442, we went to 10 checkpoints in Abuja to feed and breakfast with the military people, and fed over 300 people. We have over 5000 people who have benefited from our training program.
We have been hearing about you living a frivolous lifestyle. Is that true?
[Chuckles], Anyone making this claim should come down to Abuja and see for themselves if the claims were true or not. Alhamdulillah, all the staff have always lived a modest lifestyle. I do appreciate them for that. We all live in an apartment, the married among us live in a one-bedroom flat, while the bachelors stay together in the various rooms of the apartment.
We heard you guys went for exorbitant trips, is that true?
First of all, none of the staff have traveled out of this country since the inception of the company, excluding me. I only traveled once and it was for a religious obligation umrah, this was done within my basic earnings, and I would have loved to travel for hajj this year if I was capable of doing so. As for business, we have never traveled out for any relaxation or even business trips.
Are there challenges in your company, we have heard rumors?
What are the challenges, can you share more light?
Our challenges are divided into three major:
i. Policy
ii. People management
iii. Business loss
What I mean by policy
There is a policy made by the cooperative body that no cooperative shall give a dividend higher than 10% per annum. This policy wasn't favorable for the cooperative and its members. As such, some of the members wanted to pull out of our initial agreement.
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What I mean by people management
Most of our members have enjoyed it continuously for a year and more. When we had not suffered a loss in the past, there were only praises without complaints. However, when we suffered major losses as a result of the policy passed, it was one complaint after the other. Some of them have deliberately made efforts to bring down the organization. But, Alhamdulillah, they didn't succeed, and would never succeed Bi Idhnillah. We also appreciate members who solidly stay behind us through the trying time.
What I mean by business loss
Just like every business, we have experienced losses, some of them are natural and due to force majeure. One thing we have noticed is a lot of members are willing to enjoy and share profit but aren't willing to bear losses when they come. The fact that a business is governed by Islamic principles, doesn't mean it can't bear the loss or even fail. Members must understand that when we share profit it is Islamic finance, and when we make a loss it is also Islamic finance. But some members take it to be, that when we make a profit it is Islamic finance, but when there is a loss, it is a scam.
What do you have to say about the propaganda against you by one or two media sites?
To start with, it is false and there is no basis for it, and I humbly challenge anyone to come up with one proof to support those allegations. Moreover, on March 24th, there was a court order issued refraining our members from tarnishing the image of the Cooperative.
Secondly, the case is already filed in a high court, therefore any other statement, action that is contrary to the judicial procedure would be regarded as contempt of the court which in my own opinion has its consequences. Which includes penalties, charges of defamation of character, and other related charges to this. However, it is our responsibility as an entity to respond most appropriately without violating any of the laws governing us (Shariah and the Nigerian judicial system). As such, we would ensure that every single person that is connected to this directly or indirectly maliciously slandering the image of the organization would have to answer before the law. In sha Allah.
Finally, as Muslims, we would continue to remain patient and pray for the organization, and would not do anything unlawful concerning this issue. We would by following the legal process and we hope Allah would give us the best concerning this issue.
What's your plan for the future?
First of all, we want to raise capital for our businesses to get out of business debt by expanding our shares and allocating them to interested individuals. We also are working towards becoming a full-fledged Islamic Bank.
What's your plan for refunding members who terminated their contracts?
Based on our business ethics, we have made it part of our core values that anyone who partners with us, would ensure that they don't lose a dime with us. However, the case is currently in court and we can't say anything for now until the court gives its final judgment.
So far we have refunded more than (Thirty-Seven Million Naira) in cash and up to (Forty Million Naira) worth of business assets.
Finally, I would like to thank the perpetrators for the scandalous information, if they had not done so, we would not have had the opportunity to tell our side of the story and show the world the works we have done.
We are Reliance 360 Ltd, the official business brand of Reliance Cooperative Society Ltd. In my humble opinion, we are great assets to the nation and the world at large. The world is yet to know who we are and what we stand for. Challenges are inevitable, and we are ready to face this challenge with great optimism and trust in Allah.
Reliance 360 Ltd, in God we trust.