Thrift collection popularly known as Ajo in Nigeria, is a means of contributing some amount of money which could be done daily, weekly or monthly. This system of contribution is done by mostly market women but some other business owners and government employed people have learned the act as this will help them save and manage their salaries rather than spending all that they have on things that are not important, at the end of the decided period, each of the contributors receive his own share of the money according to the number they have chosen.
This old method has been existing for a while now, it has lots of benefits and some of them are;
(1) It helps to reduce excessive spending.
(2) It aids saving.
(3) If there is any urgent occasion or fast need for money, you could be granted loan from the group.
(4) It saves stress of going to the bank, the person who collects the money comes to your home or work place to collect it.
One of the disadvantage of the thrift contribution is what I experienced when I tried it. As a student who receives a sum of 10,000Naira as monthly contribution, I decided to begin a monthly contribution of 4,000Naira to help me save my money. I did it for a period of one year and I was supposed to receive the sum of 48,000Naira at the end of the year.
When the time for the payment was due, I heard that the woman we have been giving the money to all this while had disappeared and was no where to be found, I placed my hand on my head and I began to cry, how will all my self denial for a year just go like that without any achievement. I was down and really sad, but there was nothing I could do to help the situation.