ROTATING SAVINGS AND CREDIT ASSOCIATION: A CASE STUDY OF AJǪ ILE AARĘ IN ILA LOCAL GOVERNMENT AREA, OSUN STATE, NIGERIA

Abstract

Rotating Savings and Credit Association (ROSCA) is a coping strategy by vulnerable individuals against financial challenges unfortunately most of these strategies are undocumented. This study was an in-depth interview with the management team of one of such ROSCA based in Ila-Orangun, Osun state. It all started in 1993 when members of Oke-Ola community, Ila-Orangun wanted to encourage participation of members to discuss community development at their weekly Friday meetings. They started a ROSCA for the welfare of members and called it Ajǫ Ile Aarę.  Challenges they have faced include fraudulent member of management in year 2000, covid-19 lockdown, cashless policy of 2023. They also experienced demise of members, but families of deceased members have always been very cooperative. Their current modus operandis are: management team of chairman, secretary and treasurer who operate based on mutual understanding; contributors are guaranteed by any of the management team who collects cash of N1,000.00 from contributor and submits it at weekly Friday meetings; at the beginning of each cycle, they contribute for six  weeks before anyone can harvest; membership is unrestricted; weekly beneficiaries are selected based on their genuine needs; defaulters pay fine of N500.00 per week and serial defaulters are expelled; they instituted retained earnings to cater for eventualities. The Ajǫ Ile Aarę has sustained their members for over thirty years unfortunately, they are not registered with any government agency. Empowerment programmes for Agricultural and Micro, Small and Medium Enterprises are advised to identify such groups and strengthen them.