As Nigeria’s financial landscape rapidly digitizes, Ajo, an age-old savings tradition, is finding itself at the center of a national conversation.

Several netizens on X are discussing the Ajo rotating savings scheme, a Yoruba-rooted tradition also known as “Esusu,” where a group of people put funds together for an interest fee lump-sum payout.

In this scheme, each member takes turns receiving the total pooled amount in a pre-agreed rotation or schedule. For example, in a group of 12 members contributing N1,000 monthly, each member receives a lump sum of N12,000 during their assigned month in the cycle.

A designated person, known as the “Alajo” (record keeper), is typically responsible for collecting and disbursing the funds and keeping records. For traders and low-income earners, Ajo is a lifeline, providing lump sums of cash for projects. Several proponents value it for providing quick capital and enforcing savings discipline, amid inflation and limited banking access.

Albeit, the traditional Ajo system carries risks, primarily associated with the integrity of the members and the Alajo, such as a member defaulting on payments or the collector absconding with the funds. 

Recently, the Ajo savings scheme conversation gained momentum after one user shared a post on X (formerly Twitter) that resonated widely and sparked questions about the relevance of Ajo in today’s digital era of fintech-led savings platforms.

The user wrote, “500k Ajo wey I don pack since May, I still dey pay am. Money wey I don chop, baba God na die I dey.”

The lighthearted but relatable remark triggered discussions about discipline, financial pressure, and whether the traditional Ajo savings methods still fit into modern financial habits.

Check out reactions from several Nigerian users;

@Yemihazan wrote,

“So I guess the way this Ajo thing works is, basically every everything you pack, you return it into other people’s savings? So what exactly is the benefit?”

@iamurbanaira wrote,

“So basically you get to collect a huge some at once without interest if you ask for a loan from the bank. The problem is that so many people get into Ajo without a purpose for the BULK sum they collect. Some get into Ajo because they have no savings culture, so Ajo is a way for them to save. To me, it makes no sense cause I can save my money myself without touching it, but to some others, they can’t.”

@bimbolaroyale wrote,

“If you don’t have a specific project you are /plan working on, Ajo is not for you. Also, it’s always better to pack last. That way, it feels like money saved and not money borrowed to pay back.”

@TracyOkoh wrote,

“If you collect early, it comes as a loan without interest that allows you to pay up in installments. And if you’re the last person collecting, it comes as your savings without any interest added for your benefit, basically just collecting your savings.”

@olulade wrote,

“Ajo money is not to be enjoyed or flexed with. It is to use it for something important or substantial. More importantly, something that can repay that money. It could be an investment or a business. It only becomes a burden repaying when you use it for frivolities.”

@uzey_ wrote,

“Instead of doing this, just set a piggy vest or something to take away the said amount from your account monthly. You will avoid all the unnecessary drama.”

@EmmyMics wrote,

“Favours business people more. You get, like say 12m early to do business, and can pay back monthly without interest. It’s basically like capital upfront. For those who do it to spend, it’s useless”.

Despite its flaws, Ajo remains a lifeline for millions in Nigeria, especially those in the informal economy. Experts say that by blending tradition with regulation, the scheme could become a safer and more powerful tool for financial stability in Nigeria’s challenging economy.

Fintechs Step In: Modernizing Ajo For The Digital Era

As financial activities continue to rapidly shift towards digital platforms, several fintech companies are stepping in to modernize this century-old practice, preserving the cultural essence while enhancing convenience, transparency, and security.

While the Ajo savings scheme is plagued with challenges such as fraud risks, poor record-keeping, and limited scalability, these fintechs seek to solve these problems.

Below are some of the most prominent players leading this evolution:

PiggyVest (Ajo & Savings Circles)

PiggyVest, one of Nigeria’s most widely adopted savings apps, has integrated Ajo-style group savings features into its platform. Through its Savings Circles, users can form group contributions where members agree on fixed periodic deposits toward a common target. What distinguishes PiggyVest is the automation of contributions, digital record-keeping, and interest returns — features that traditional thrift schemes lack. This has made it popular among young professionals seeking structured accountability without the fear of someone disappearing with the funds.

Cowrywise (Savings Groups & Rotational Payouts)

Cowrywise is another leading digital savings platform transforming how Nigerians manage collective finances. Its Savings Circles allow friends, families, and cooperatives to pool funds toward shared goals, complete with transparent tracking and automated deductions. The platform encourages long-term commitment by offering interest accrual on pooled funds, giving users an advantage over traditional Ajo, which typically does not yield financial growth.

Esusu Africa

Unlike consumer-focused savings apps, Esusu Africa focuses on digitizing thrift and cooperative societies, particularly in low-income and rural communities. The platform provides digital ledgers, contribution schedules, debt management tools, and mobile payment integration for groups that previously relied on handwritten records and physical cash. By formalizing informal finance, Esusu Africa helps grassroots communities build credibility, credit histories, and financial stability — all while keeping familiar cultural systems intact.

Thrift+ (Community Financing Hub)

Thrift+ offers a more structured approach to digital rotating savings by integrating financial planning tools and payout management. Members of a thrift group can monitor contribution timelines, enforce payment reminders, and manage payout turns in a tamper-proof digital environment. The platform also supports financial education, encouraging users to not just save, but plan strategically. This makes Thrift+ popular among market women, traders, and small cooperatives who rely heavily on collective support systems.

CircleFunds (Digital Thrift Circles with Security Focus)

CircleFunds specifically addresses the biggest flaw of traditional Ajo systems: trust. The platform requires identity verification for all members, logs every transaction digitally, and automates contribution reminders and payouts. Funds are held securely and released according to pre-agreed schedules, reducing the risk of fraud or contribution disputes. CircleFunds also maintains the social aspect by allowing small groups — friends, coworkers, business networks — to save together while removing the vulnerabilities that come from handling cash manually.

Conclusion

For many Nigerians who have adopted these digital alternatives, the convenience and security have been transformative. Group savings can now be coordinated across cities, fostering new forms of financial cooperation without geographic limitations. Users also highlight the transparency and automation as major advantages, eliminating the anxiety of remembering payment dates or worrying about mismanagement.

Yet, while technology is reshaping the age-long Ajo practice, its’s cultural value remains at its core. Whether traditional or digital, the system continues to reflect the importance of community-driven financial support in Nigeria, a reminder that even in an era of fintech innovation, some traditions evolve rather than fade away.

Safe to say that rather than replacing Ajo, technology is elevating it, ensuring that a system built on trust and community continues to thrive in an increasingly digital economy.