₦airaland Forum

As the economy bites hard on the average Nigerian family, the recently increased bank charges may have become one too many for them and, naturally, in this kind of situation, the alternative becomes the choice, and that appears exactly what many families have decided to do


In trying hard to meet up and manage the continuous increase in the general cost of living, many families have reduced the volume of their savings in the bank.


And the banks’ decision to increase charges of both deposits and withdrawals finally broke the camel’s back.

Therefore, many families have stopped saving in the banks. Instead, they have moved back to the familiar terrains, which they probably must have abandoned many decades ago.

Economy&Lifestyle found out that the few who save are not willing to save their money formally but have returned to the informal local thrift contribution method abandoned for years.


In the 90’s, daily contributions popularly known as ‘ajo’ a Yoruba word, gained prominence and acceptance by many especially small business owners.

This served as a means of self employment for individuals who have the ability to move around and collect money from customers willing to save. A little amount is paid as service fee for the period the contribution lasts.

The increased exposure to financial literacy and inclusion made many to adopt formal methods of saving such as banks and wallets.

Mrs. Celestine Ogbebor, a trader noted that, she embraced ‘ajo’ because of the recent charges deducted from her bank account anytime she deposits money.

“It’s not funny anymore. Imagine saving N50,000 and when it gets to your account you have nothing less than N49,000 left. You are unable to use the money for the thing you budgeted it for.

“If you have a target of N200,000 a month, you will be getting less than the amount.
“So, I returned to doing my daily contribution to those local thrift collectors and collect my money with just N200 instead of losing more than that because you pay when you deposit in banks and when you withdraw also.”



Mr. Francis Ighiadolor, a mechanic, said: “I make daily contributions locally now to save for whatever I want.
“Since a close friend’s bank account was hacked and his N2 million disappeared into thin air till date, I resolved to make a daily contribution.


“We organized it among ourselves as a group of mechanics.

“Even the way the bank charges you for their services doesn’t encourage me to do banking anymore.

“Even the wallets are not safe. Money just disappears into thin air and you are left with nothing because the banks will always tell you it is not from their side.

“Since I started this contribution, I attend to my needs on time and have received no excuses about my money disappearing.”

The shift from ajo to formal saving methods was as a result of situations where collectors abscond with customers’ savings or are being robbed, making customers dejected and some unable to recover from such loss.

Another reason was the trust in the financial system of formal financial institutions then.

Mrs. Miracle Ajani, a hairdresser, said she created a WhatsApp group where members communicate with the administrators.

“This enables them to have the trust and know whose turn it is to receive payment and it is done in cash.

“They bring their contribution to my shop.

“Some of them have stopped using their bank accounts to save money.

“Even when money is sent to them they withdraw it immediately complaining that deductions are constantly made from the account and reduce the value of the amount sent.

“When I collect the money, I give it to the person whose turn it is to receive and remove N100 for the service fee which they prefer.

“I also do daily contributions with those local thrift collectors because I don’t have the time to visit the bank daily and at the end they deduct from the little I had saved all in the name of charges.

“They always have explanations to give. So to avoid such, I resorted to saving with local thrift collectors.

“Recently, I heard that they increased ATM withdrawal charges and SMS alerts.

“In this economy. I don’t have money to waste all in the name of saving.

“All those high end traders are also saving with local thrift collectors which they collect at the end of a period to restock.”

Recall that commercial banks on May 1st increased their SMS alert charges to N6 from N4 citing increased telecommunication tariff.

Source: https://vanguardngr.com/Bank-charges-More-families-return-to-thrift-savings

Person way tame Atlantic ocean no fit tame Nigeria? What an irony

That is the way to go oo .. but there are others that are not overcharging...

One man's food is another man's poison.. Ajo don ruin some people life while e don bless some people's life ..

Use ur money to buy gold instead of saving in banks.

TossTos:
That is the way to go oo .. but there are others that are not overcharging...

One man's food is another man's poison.. Ajo don ruin some people life while e don bless some people's life ..

Kindly recommend that to me pls

They should keep their money from rats and cockroaches

fuckingAyaya:
Person way tame Atlantic ocean no fit tame Nigeria? What an irony

..you mean the guru strategist: tamer of the Atlantic ocean Lols..

Never4getU:
Kindly recommend that to me pls

Me i use Palmpay, Opay and moniepoint to spend and send quick monies while I use Zenith and Access for huge funds .. my most use Bank is Palmpay and Opay sha. there's no day I don't use them and my flexi-savings with Palmpay , I received about 2k from it every 10days to buy data or airtime , I can even withdraw it as cash . And other benefits as a premium user

Aye o le o

access bank is the worst when it comes to unnecessary deduction.
If you leave 50k in access bank for six months..
They take everything in charges ..

Crazy bank

Make them no run with person money

adenigga:
Source: https://vanguardngr.com/Bank-charges-More-families-return-to-thrift-savings

To be honest with you bank charges it's too much , sms alert is now 6 naira 4 naira before, bank ussd 6 naira now, atm maintenance fees, 50 FG stamp duty at least say you are not transacting much with bank you go collect 500 naira charges monthly imagine when you are transferring money as a business person sms alert charge's go surplus , not to talk of POS charges it's finished mehn

The reforms we started under Soludo has come back 360. What a country.

Thats how the banks keep declaring 100 of billions in profit monthly

I remember on my stanbic ibtc app if I carryout a single transaction I will see about 6 different charges.

Even days I don’t use d App I still see charges

Had to stop using d bank.

adenigga:
Source: https://vanguardngr.com/Bank-charges-More-families-return-to-thrift-savings

just say opay is winning!

As for me and my family, we shall stick with opay

Nigeria my country

princepee:
access bank is the worst when it comes to unnecessary deduction.
If you leave 50k in access bank for six months..
They take everything in charges ..

Crazy bank

And stanbic

sonnie10:
Make them no run with person money

Lols, what I was thinking, that's wat trending back then, made so many to go open bank account... Last last everyone go switch to digital money..

princepee:
access bank is the worst when it comes to unnecessary deduction.
If you leave 50k in access bank for six months..
They take everything in charges ..

Crazy bank

Indeed.

I don't even leave my salary in it for long.

Once it enters.. Phiam, I don transfer am go palmpay

If you're a Chess player here i greet you.
I bank with mutual funds no time putting money in sharks banks.

As long as I'm always the first to take money, no problem.

And the thrift collector better not die!

Sheuns:
Use ur money to buy gold instead of saving in banks.

Sabi guy

Sheuns:
Use ur money to buy gold instead of saving in banks.

Mr investor

Rilwayne001:
Indeed.

I don't even leave my salary in it for long.

Once it enters.. Phiam, I don transfer am go palmpay

Them go debit am negatively.
Whenever salary drop e go still comot.
There no escaping it.

TossTos:
That is the way to go oo .. but there are others that are not overcharging...

One man's food is another man's poison.. Ajo don ruin some people life while e don bless some people's life ..

Pls which ones don't charge much.

The way the remove money from my account.

First Bank will debit u for recharge cards without reversing it and u won't get the recharge

princepee:
access bank is the worst when it comes to unnecessary deduction.
If you leave 50k in access bank for six months..
They take everything in charges ..

Crazy bank

They are the worst. I emptied all my money. Let them deduct from zero

Entanglement:
just say opay is winning!

As for me and my family, we shall stick with opay

All these Opay workers ehn. Keep hyping yourselves.

As uncle bola taxes activities, people are running away from traditional banks.