LibertyPay, Nigeria’s digital payment solution and distribution brand, has digitised and formalised ajo thrift collection and micro-savings with a solid plan to issue over 150,000 digital cards to various customers participating in ‘ajo’ (local contributions) across Nigeria in the fourth quarter of 2023.
According to the company, the innovation of “ajo,” a traditional thrift collection and microsavings system in Nigeria, is poised to improve communities, encourage financial inclusion, and transform lives while guaranteeing a modern, digitalized system.
LibertyPay’s Chief Executive Officer, Igbene Otimeyin, reports that the company has observed a 150 percent increase in seamless savings collections from “ajo” participants by traditional thrift collectors as a result of the innovation. Additionally, the system has become more streamlined, accessible, and transparent, and there is a secure financial resilience that aims to improve the lives of Nigerians.
“Traditional ‘ajo’ system has long been a cornerstone of informal micro-savings and thrift collection fostering trust and community cohesion. However, these age-old practices have needed a digital makeover to keep pace with the modern world. LibertyPay seized this opportunity in partnership with industry players to usher in a new era of financial inclusion and empowerment that will not only streamline the savings process but also ensure financial transparency and accountability by all parties,” Otimeyin explained.
He continued that “specifically, we are empowering Ajo collectors with over 1,000 Point of Sale machines simply accessible by dialing *347*180*4#. These devices empower collectors to seamlessly manage contributions and withdrawals, eliminating the need for cumbersome bookkeeping. With these collectors facilitating the transition to digital Ajo, we anticipate a digital thrift collection of N5 billion monthly or an impressive $5.5 million.”
“This colossal shift is set to supercharge the financial inclusion of Nigeria’s informal sector.”
Nosiru Sonoiki has been named as LibertyPay’s new Chief Operating Officer in the meantime. Throughout his career, Nosiru has continuously shown extraordinary commitment and a unique capacity to establish vital alliances, especially in his role as Head of Agency Banking and Business Development.
With these deliverables, Sonoiki will spearhead the endeavor to scale LibertyPay’s digital ajo offering.
As LibertyPay is coming up with new ideas, it’s important to remember that the Central Bank of Nigeria (CBN) saw its potential early on and granted it an AIP in January 2023 under the supernatant category. This portends well for LibertyPay’s future as it forges ahead in the field of financial inclusion for Nigerians.
