How to Start a Daily Contribution Business (Ajo) in Nigeria

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If you’ve been thinking about starting a business that doesn’t require a huge startup capital and gives you daily cash flow, then starting a daily contribution business—also known as Ajo, Esusu, or Adashe depending on your tribe—might be one of the smartest moves you can make in Nigeria right now.

You’ve seen market women, okada riders, small shop owners, and even civil servants contribute a fixed amount daily to someone they trust. That “someone” could be you. And if you get it right, it can be both a helpful service and a reliable source of income for you.

This guide is for you if you want to understand what it really takes to start an Ajo business in Nigeria, avoid the usual traps, and grow your customer base with trust and consistency. Let’s break it down step-by-step.

What Is Ajo (Daily Contribution)?

Ajo is a traditional savings system where contributors pay a fixed amount daily, weekly, or monthly into a pool, and at the end of a cycle—often 30 days—they get their total savings back (or minus a fee).

As the coordinator or collector, you help people save their own money. In return, you earn from the commissions you charge or from reinvesting the pooled funds. You’re essentially the human piggy bank, and people count on your trustworthiness.

Why Start a Daily Contribution Business?

Before we dive into how to start, let’s look at why you should even consider it:

• You don’t need a physical shop or office.
• The capital requirement is low.
• You earn daily income.
• People in informal sectors depend on it.
• You’re providing real financial help to low-income earners.
• With trust and growth, you can scale into microfinance.

It’s one of those few businesses where your personality, discipline, and relationship with people matter more than your educational qualifications or fancy branding.

Step 1: Understand the Business Deeply

Don’t jump into the Ajo business just because others are doing it. Learn how it works in your area. Watch someone already doing it. Talk to market women or traders who save daily. Ask them what they like or don’t like about their current collectors. You’ll be surprised by how much you can learn from just listening.

Some may complain about collectors disappearing with funds. Others may mention inconsistent visits. Pay attention—these are the exact pain points your business should avoid.

Step 2: Decide on Your Model

There are generally three models in the daily contribution business:

1. Traditional Ajo (Return All Savings): You collect ₦500 daily from someone for 30 days. At the end, you return ₦15,000 (₦500 x 30). Your gain comes from collecting from multiple people and reinvesting the funds temporarily.
2. Commission-Based (One-Day Fee): You collect ₦500 daily for 30 days but return ₦14,500 on the 30th day. The ₦500 difference is your commission. Most people are used to this.
3. Rotational Ajo (Thrift Group Savings): A group of 10 people contributes ₦1,000 daily. Each day, one person receives ₦10,000. This rotates until everyone has had their turn. You earn from organizing and possibly charging a service fee.

Pick the model that fits your style, capital, and customer base. You can even offer all three in stages.

Step 3: Know the Risks and Prepare

Ajo is a trust business. If someone defaults, delays, or vanishes, it affects everyone. Your reputation especially. You’ll need to be street-smart and firm.

Risks include:

• Defaulting customers
• Robbery or loss of funds
• Being accused of dishonesty
• Stress from daily movement and collections

To handle this, here are some tips:

• Start small. Know each customer personally.
• Don’t collect more than you can refund at the end.
• Record everything—digitally or in a hard notebook.
• Keep part of your capital as backup in case of emergencies.
• Deposit collections in a bank account daily if possible.

Step 4: Register and Structure Your Business

You may not need a CAC registration on day one, but it becomes important as you grow. If people will be giving you their money, they need to know you’re serious and legitimate. You can register your business name with CAC under something like “XYZ Multipurpose Cooperative” or “XYZ Contributions Services.”

Other structuring tips:

• Open a dedicated bank account.
• Use a savings app like Moniepoint, PalmPay, or Opay to separate your personal and business funds.
• Consider issuing contribution cards or simple receipts.
• Use WhatsApp to update customers daily and build trust.

Even if you’re doing it manually, consistency and communication matter.

Step 5: Start With a Small, Trusted Network

Don’t try to collect from 100 people on day one. Begin with 10 trusted individuals—maybe your neighbours, family members, or market people who know you. Treat them well. Show up every day. Give them their money when due.

If you keep your word and show discipline, they will refer you to others without you asking.

Step 6: Set Daily Routes and Stay Consistent

Have a fixed route and schedule. People like to know when to expect you. For example:

• Morning: Visit shops at Bodija Market.
• Afternoon: Visit salon and tailoring shops.
• Evening: Collect from your street contributors.

People will trust you more when they know you always show up—even if it’s raining. And always dress decently and speak politely. Your presence is your brand.

Step 7: Track Everything—No Guesswork

Don’t rely on your head. Every customer should have:

• A physical contribution card OR
• A digital record via WhatsApp, Excel, or an app

Record:

• Customer name
• Phone number
• Daily contribution amount
• Missed days
• Total saved
• Commission agreed
• Payout date

When customers see that you’re detailed, they’ll feel secure.

You can even use simple digital tools like:

• Microsoft Excel
• Google Sheets
• Ajo apps like “Esusu App,” “Moniepoint POS,” “Thrift+” or “Susu App”

Digital tracking also protects you in case of arguments or disputes.

Step 8: Earn and Reinvest Carefully

The money you make should not be blown on shopping sprees. You need backup funds. As you collect from more people, the amount you’ll need to pay out grows. If you charge ₦500 per person per month and have 50 customers, that’s ₦25,000 in commission.

Don’t eat it all.

Do this instead:

• Save 50% for backup funds
• Reinvest some into expanding your routes
• Use part to print better record cards or flyers

You grow by being smart with your small profits.

Step 9: Use Tech to Scale

Once your customers grow beyond what you can manage with a notebook, go digital. Apps like EsusuApp, Kolomoni, or even WhatsApp business features can help you automate reminders and updates.

You can also:

• Send daily payment alerts on WhatsApp
• Issue e-receipts
• Create a Google Form for new customers to sign up
• Set up auto-savings with bank apps for clients

Even if you’re in the trenches collecting money physically, you can still look organized and modern. That attracts bigger clients—like mini-supermarkets, artisans, or even okada unions.

Step 10: Build a Name People Trust

Ajo is not regulated by CBN, so your name and face are your license. People must believe you will always pay them back. They must feel safe when they give you money.

Here’s how to build that trust:

• Never miss a day—if you’re sick, get someone you trust to collect on your behalf and let everyone know.
• Pay before customers remind you.
• Be transparent when a client misses payment—never cover it up.
• Give small gifts occasionally—₦100 airtime, for example. It builds loyalty.

The more people talk about your honesty, the faster your business will grow—without you spending on ads.

What You Need to Start

Here’s a simple starter kit:

• A record book or contribution cards
• A phone with WhatsApp
• Basic spreadsheet knowledge (optional)
• ₦10,000–₦30,000 to cover small defaults or missed days
• A branded ID card (optional but helpful)
• Power bank (you’ll need it during long field days)
• Comfortable shoes—you’ll walk a lot

Potential Monthly Income Breakdown

Let’s assume you charge ₦500 per customer for a 30-day cycle and manage 50 customers:

₦500 x 50 = ₦25,000 per month

Scale to 100 customers = ₦50,000

Add a small service fee for rotational Ajo or loan requests, and your income increases even more. Some full-time collectors with large networks earn ₦100,000 or more monthly.

How to Handle Defaults

This part is critical. When someone misses a day:

• Mark it clearly
• Remind them gently
• If they still don’t pay, deduct from their final return or remove them from the next cycle

If one person defaults and you cover it, others may do the same. Be firm but fair. And if someone completely disappears, you must have a backup fund so others aren’t affected.

Bonus Tips to Grow Fast

• Target markets, motor parks, mechanic workshops—they love Ajo.
• Partner with POS agents—they can help you collect.
• Run referral rewards—₦200 airtime for every 5 people someone refers.
• Create a “customer of the month” reward.
• Stay humble and approachable—don’t behave like a banker.

Final Word: Your Character Is Your Capital

In Nigeria, people don’t just hand over their money because you asked. They do it because they trust you. So, no matter how smart your plans are, if you’re not disciplined, organized, and honest, your Ajo business won’t last.

But if you stay consistent, treat your customers well, and run things properly, you’ll build a daily contribution business that supports you for years—and maybe even turn it into a registered cooperative or microfinance venture someday.

The best time to start is now. So lace up your shoes, print your cards, and start collecting. You’re building a business, one naira at a time.

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