With austerity, you won`t have access to it until you`re the next to queue for money, unlike your savings you have access to, which you`ll always dive into without discipline. Osusu participants must pay a registration fee to the savings collector, depending on the rate at which they contribute. If they contribute every day, they owe a full daily contribution to the savings collector every eight days. If they contribute weekly, they owe the savings collector 1/7 of the weekly contribution amount. [2] My friend mentioned that the system deprives the participant of interest income, especially when the participants were not among the first people to collect the contribution. The comment on savings income is not entirely wrong, but it is very misleading. At the end of the rotation, you can either cancel the contribution or start again. For example, if twelve people are in a monetary contribution group and put hundreds of thousands into it every month, each person would be entitled to a whopping 1.2 million Naira at the end of each month. In urban areas, Yoruba distinguish between Esusu and Ajo. In ajo, a professional collector, the Alajo, walks around to collect contributions, usually daily or weekly, and receives a small commission for this service. This is more personal than the formal financial system, as no one needs to go to the bank to make a deposit. At the same time, it is less personal than esusu associations, because ajo contributors do not necessarily know other contributors.

On the contrary, their relations are communicated by the Alajo which lists the contributions. Each contributor must make regular contributions within a set period of time, but is free to contribute in accordance with their budget. In certain circumstances, for example.B. in an emergency, a contributor may ask Alajo to return a certain amount of his contribution; This is what distinguishes ajo d`esusu. In some cases, the Alajo has a bank account into which he or she pays the money until the end of the collection cycle, to which the money must be paid to the selected contributor. The decision on how and when the contributor will receive the money from the Alajo will be mutually agreed between the two parties. For example, when the contributor contributes daily (which is popular with merchants and small entrepreneurs) and the contribution becomes "due" at the end of the month, the Alajo, after deduction of its fee (which normally corresponds to one of the rounds of the total contribution), returns the rest of the contribution to the contributor. Esusu operates outside the formal legal and financial system and tends to operate exclusively on an oath of loyalty and mutual trust.

This ensures that members of the association who have raised their funds prematurely do not withdraw from the system, causing other members to lose some or all of their contributions. As far as Ajo is concerned, the credibility of Alajo plays a key role in preventing risks and ensuring continued sponsorship. The way ajo works is that a group of people get together to put each month an agreed sum of money into savings, and then at the end of each month someone in the group takes the money saved for that month, which will then be turned over the entire period of the monthly contribution between all the members of the group...