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Every morning, traders once waited for the familiar knock of the ajo collector moving from shop to shop with a notebook and nylon bag for cash collections. Today, many simply wait for the notification sound from their phones.
Inside crowded markets across Lagos, Ibadan, Kano and Port Harcourt, the traditional contribution culture that survived for decades is quietly changing. What used to depend on trust, physical cash and handwritten records is now being controlled by smartphones, automated deductions and digital wallets.
“I stopped doing physical ajo after one woman disappeared with our money,” said Mrs. Bose Adeyemi, a foodstuff seller at Oshodi Market in Lagos. “Since I started saving on OPay, I can monitor everything myself without fear.”
For decades, ajo — also known as esusu or adashe in some parts of Nigeria — remained one of the oldest and most trusted saving systems among traders, artisans, transport workers and salary earners. The contribution system helped many Nigerians raise business capital, pay school fees and survive difficult economic periods.
But rising cases of fraud, theft and financial insecurity surrounding physical cash contributions are pushing many people away from traditional thrift systems toward financial technology platforms like OPay,PalmPay,PiggyVest and others.
Nigeria’s fintech industry has grown rapidly over the last few years, with millions of Nigerians now depending on mobile payment platforms for transfers, savings and daily transactions. According to reports by the Nigeria Inter-Bank Settlement System (NIBSS), electronic payment transactions in Nigeria have continued to rise significantly as more Nigerians embrace digital finance.
The rapid growth created intense competition among fintech companies looking to dominate everyday banking and savings habits. While traditional ajo collectors once controlled grassroots contribution systems, fintech platforms are now fighting aggressively for the same market through savings products, zero transfer charges, cashback offers and high-interest savings options.
One major reason for the shift is the fear of fraud linked to physical contribution systems.
In many markets, contributors complain about collectors absconding with people’s money after months of daily payments. Because traditional ajo often operates informally without legal protection, victims usually struggle to recover their funds once problems occur.
“I lost N30,000 in money contribution one year ago,” said Oladeji Mary, a student in Lagos. “The collector suddenly stopped answering calls and nobody could find her. Since then, I prefer saving my money digitally.”
Some victims say the experience leaves emotional and financial scars because the lost money is often meant for school fees, rent or business support. In many cases, contributors are forced to start saving all over again after months of effort disappear overnight.
Apart from fraud, physical ajo systems also expose contributors and collectors to robbery risks because large amounts of cash are moved around daily. Some contributors say criminals sometimes monitor payout periods or target collectors carrying money.
Digital platforms changed that experience completely.
Instead of handing over physical cash to a collector every day, users can now save directly from their phones using features like SafeBox, Target Savings and fixed deposit options. The apps automatically deduct daily, weekly or monthly savings from users’ wallets or linked accounts.
For many Nigerians, the automated process introduced a safer and more disciplined savings culture.
Another factor that accelerated the transition is financial returns.
Traditional ajo collectors usually charge contributors one day’s contribution as commission. Fintech companies disrupted the system by offering interest on savings and fixed deposits, allowing users to earn money while saving.
This became highly attractive to traders, students, salary earners and small business owners already battling rising living costs and economic hardship.
Competition among fintech companies has also intensified the digital savings revolution.
Platforms now compete heavily through marketing campaigns, referral bonuses, free transfers and flexible savings plans aimed at attracting ordinary Nigerians. The spread of POS agents across markets and streets further strengthened their dominance by making onboarding easier for people without traditional banking access.
Some traders now say they hardly see physical ajo collectors move around markets like before because many contributions are gradually shifting online through fintech apps.
The 2023 cash scarcity crisis also changed saving behaviour permanently for many Nigerians.
During the naira redesign period, millions struggled to access physical cash and relied heavily on transfers for survival. Markets, transport operators and roadside businesses increasingly accepted digital payments, forcing many Nigerians to embrace fintech platforms fully.
Interestingly, technology is not completely destroying ajo culture, it is modernising it.
Many digital platforms now recreate traditional contribution systems electronically, allowing groups to contribute together online, monitor records instantly and receive payouts automatically without physical meetings.
Despite the growing popularity of fintech savings, traditional ajo still survives in some communities because of the personal relationships and social discipline attached to the system.
However, trust in physical contribution systems continues to weaken as fraud and theft cases increase.
What was once managed through notebooks, handshakes and physical cash is gradually becoming a digital financial culture powered by apps, automated reminders and mobile wallets.
And across Nigeria today, many people believe the safest ajo collector is no longer the person knocking on shop doors every morning but the app sitting quietly inside their phones.
Onwuchekwa Favour
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