BY CHIKA KWAMBA/OGORAMAKA AMOS/PAUL EGEDE/RITA OYIBOKA
As the year draws to a close, fear has gripped many patrons of the traditional Osusu (thrift contribution) scheme across the country. For decades, Osusu has been a trusted grassroots saving system that binds traders, artisans, and low-income earners together in collective financial discipline. But in recent years, and particularly during the festive season, that trust has been shattered by growing reports of collectors and contributors absconding with people’s hard-earned savings.
Across markets, streets, and offices, conversations are thick with stories of betrayal. Participants narrate how people they once called “trusted sisters” and “mama Osusu” vanished into thin air just when everyone expected to reap the fruits of their disciplined contributions.
Our correspondents spoke with residents, traders, and financial experts to understand why the problem persists, how victims are coping, and what can be done to restore confidence in the age-old thrift system.
A fruit seller at Rumuodomaya Market, Mrs Grace Akabu, who has participated in Osusu for more than 10 years, shared her painful experience.
“Last December, our collector, a woman we’ve known for years, collected contributions from about 20 of us and disappeared. We were saving ₦2,000 daily, hoping to use it for Christmas goods. When it got to the time for her to pay, her phone went off. We later heard she packed out of her house. I lost ₦50,000. Till today, nobody has seen her. I was really pained, honestly”
Grace said she hasn’t joined any Osusu group since that incident. “I now save with my bank app, even though it’s not easy. I can’t trust anybody again. That thing broke me.”
For some, the betrayal isn’t in the marketplace but at work, too. Mr Ikechukwu Opara, an Administrative Assistant in a logistics company in Rumola, recalled how his cooperative colleague suddenly resigned and vanished with their money.
“We started an office Osusu to help staff with small capital. There were 12 of us. Everyone contributed ₦10,000 monthly. The woman coordinating us was responsible. When it got to her turn to collect, she resigned without letting any of us know, she took her money and disappeared with the rest. We couldn’t trace her. I was so shocked because we never thought that she would do such a thing. I lost about ₦100,000.”
According to Ikechukwu, that single incident broke the office’s unity. “Now everyone does private savings. Nobody wants to hear Osusu again. As for me I use a savings app called Piggyvest where I drop money and lock it so that I wouldn’t be tempted to withdraw it, To me it’s far better than someone running away with my money, because It’s like these people always wait at the end of the year, so that they can run away with people’s sweat you can imagine”
Madam Christy Igwe, a foodstuff seller, explained that collectors often abscond during the “ember months.”
“From my experience, I have observed that the Osusu problem starts around November and December. That’s when people’s turn is near, and the collector starts giving excuses — sickness, burial, or travel. Next thing, they vanish. One woman who collected from us last year claimed her husband was ill. Before we knew it, she stopped coming to the market. We later found she had relocated to her village.”
Christy said she still participates but with caution. “Now, I only join groups where everyone knows each other’s family house. We also make sure the collector has a shop in the market. That’s how we manage the risk”
Mrs Chinwe Amadi, a government school teacher, recalled a case that shocked her neighbourhood. “A neighbour organised an Osusu among church women. Everything was going fine until it was her turn to pay others. She suddenly claimed that her house had been burgled and the money was stolen. People didn’t believe her. Before we knew it, she relocated. It caused a serious quarrel in the church. Some women even stopped attending service.” Chinwe said she no longer joins Osusu groups, no matter how attractive they sound. “I now prefer to save with digital thrift platforms where my money is traceable.”
At Rumuokoro, Mrs Lovina Opara, a tailor, says Osusu is the only thing that helps her save. “I know the risks, but Osusu helps me. If I keep money at home, I’ll spend it. I joined a group with people I know personally — all tailors. Our collector is our president, and we all know her family. We even signed papers. That’s how I’m managing.”
Lovina said the scheme is not all bad. “It helps women who don’t earn much. The problem is not the system but the people who handle it.”
To understand why the problem is rampant, our correspondent spoke with Mr Chijioke Ogbonda, a microfinance consultant based in Port Harcourt. He said, “The traditional Osusu system relies on trust and social pressure rather than legal contracts. Once that trust is broken, recovery becomes difficult. Most collectors are unregistered, and there is no legal protection for contributors. That’s why cases of absconding increase near the end of the year, when people’s savings peak.
“We must find balance. Osusu is not the enemy. The enemy is a lack of accountability. If we introduce simple checks — receipts, witnesses, and traceable deposits — we can revive people’s trust.” He recommended that market unions and local associations formalise Osusu operations.
“If market associations register their thrift groups and maintain simple accounting records, it’ll be easier to track defaulters and discourage fraud.”
Mrs Ijeoma Onyeka, a financial literacy advocate in Port Harcourt, explained that technology could help sanitise the system. “There are now digital Osusu and cooperative platforms licensed by the Central Bank of Nigeria (CBN). They use apps to record payments, send receipts, and allow withdrawals through traceable accounts. That transparency discourages fraud.”
“Many market women don’t know these safer options exist. Instead, they rely on oral trust.”
Another financial expert, Mr Stanley Owei, who is the CEO of a micro-savings firm in Port Harcourt, suggested hybrid solutions. “The Osusu culture is beautiful because it encourages savings and community bonding. But it needs structure. We can modernise it by integrating it with microfinance institutions. Let market groups open group accounts in banks where collectors deposit daily contributions. That way, no one person holds the cash.”
According to him, trust must be supported by evidence. “Every payment should have a record — SMS, WhatsApp receipt, or written log. People must move away from verbal promises.
In an interview with The Pointer, Agbor-based hairdresser, Ms Jessica Emegha, explained that she has been practising Osusu, a daily savings scheme, since the beginning of the year to save towards her annual shop rent.
“I started in February this year to save for my shop’s rent. However, a friend was saving for December, and suddenly, the collector stopped coming. They tried calling her number, but it was unreachable. Later, they traced her to her house, and her husband said she had travelled to Senegal.”
Asked how she ensures her own savings are safe, Ms Emegha explained, “I collect my own every month. That way, if anyone wants to scam me, the loss won’t be too much.”
When questioned about her daily contributions and what advice she would give to someone considering a similar savings method, she said, “They should find someone they trust and know where the person lives. For me, the collector lives just across the street from my shop, so I know her house. It’s important to be cautious.”
Ms Emegha added, “Mostly, the younger women or girls are more likely to run away with the money. Elderly people, especially those with children, are less likely to risk their family’s welfare. But even then, it’s not a guarantee; some married women have still left their children behind and disappeared.”
Speaking about her experience, a trader in Asaba, Mrs Victoria Obodo, said, “I used to participate in daily pay schemes before, but I stopped because of the many cautionary stories I’ve been hearing, especially those that involve collectors handling large sums. Some of these collectors borrow the contributed money to lend it out for interest. The problem is that if the borrower defaults, the collector cannot remit funds to the contributors, and it inevitably leads to conflict.
“In some cases, the collectors even give the money to their husbands to travel, or they use it themselves to travel abroad. Around my shop, there was a collector who took over ₦15 million contributed by numerous traders. The contributors tried to get their money back, but he couldn’t pay. Taking him to court was practically useless; his family would just intervene, bail him out, and legal proceedings would drag on endlessly. For most people, the hassle and cost of pursuing the case weren’t worth it, so they just let him go.
“That’s exactly why I stopped participating in daily pay,” she said.
A resident of Agbor, Mr Akinola, shared his experiences that completely changed his perception of Osusu. ‘’The first incident occurred when I joined a group with the hope of saving money for an important project. Unfortunately, the outcome was disastrous. When it was my turn to receive my contribution, I was shocked to discover that my money was not completely paid. Despite several appeals and promises, I never got the full amount. It was painful and disappointing.
Continuing, he said, ‘’as if that was not enough, I decided to try another platform—a daily contribution managed by someone I thought was reliable. Sadly, that experience turned out to be even worse. The collector used the money I contributed to pay her children’s school fees and could not refund the full amount when it was my turn. I was left stranded, and that was the final straw. Those two incidents taught me bitter lessons about trust and accountability in traditional savings systems.’’
Since then, he made a firm decision never to engage in any Osusu or daily contribution. ‘’While I acknowledge that Osusu may be beneficial for others, my experiences have left me deeply sceptical. I do not condemn the idea itself—it remains a beautiful concept of communal saving—but the reality is that many people have become deceitful. They act nice and trustworthy in the beginning, presenting themselves as responsible members, but once they have collected their own share, paying others back becomes a long story filled with excuses and lies.’’
Therefore, Mr Akinola strongly advised anyone considering joining an Osusu group to proceed with caution. Before committing your hard-earned money, ensure that the group is properly registered, has written rules or a constitution, and operates with clear accountability structures. Registered and well-organised groups often have leadership, records, and legal backing that can protect members’ interests. On the other hand, informal or unregistered Osusu groups are risky—if someone runs away with your money, there is little or nothing you can do to recover it.
Another respondent, Ifeanyi Abiamuwe, commended The Pointer for the choice of the topic at this time of disbursement when so much is happening in various osusu organisations. He said these osusu come in different forms, like meeting, cooperative society, daily contributions and the rest.
Mr Abiamuwe shared his experience with a daily pay money collector in 2022 when his wife opened her business, and they decided that one of the ways to save money was to engage the service of a daily pay money collector called Nicholas, who operates within the Odozi, Iregwa, Marire, and Baleke axis.
According to him, he was doing business with honesty until he was involved in an accident. ‘’At that time, we felt like not disturbing him until he fully recovered and started the business. As we reminded him of our unpaid two months, he suggested that we keep patronising him, and in that process, he will raise money to settle us.
‘’Indeed, we continued unknowingly to us that the same way he was owning us, he was owning others. At the end of the first month, he disappeared into thin air till today.’’
He also revealed his encounter, which happened in the church. ‘’We organised a meeting in the church where we thought we could trust one another, as we operate in the same household of faith.
Another resident, Mrs Maxwell Isioma, said that when it comes to meetings, it often happens when it reaches time to return borrowed money, issues start arising. She revealed her experience in the past where she was a guarantor to a friend, but unfortunately, that year, all the money she contributed was deducted by the meeting, as her friend was not able to contribute the amount borrowed and yet was not able to raise the money on the day of disbursement.
Mrs Nkechi Chukwuka, a tailor in Odozi Street, also recalled her encounter with a daily pay money collector through which she was saving money for her house rent, store rent and money for Christmas celebration.
According to her, the ugly incident occurred in November 2023 when she was planning to collect her savings for the year, only for her to realise that the guy had travelled abroad. She noted that it took the grace of God for her to survive the shock. Till today, she was still expecting that the guy would call her and others involved to settle them.
In Asaba, Mrs Patience Onyeachie said, “I myself am an Osusu coordinator, but I don’t do yearly contributions, so I have never been cut up in such a mess. What I do is weekly and monthly, we gather it and give it to one person till it goes round.
‘’But I have heard of stories where people vanish with people’s money. The yearly one I do in my office, we lend the money out, and by August, we start to gather so that by November, we start disbursing the money, even with interest, depending on how people borrow the money.
‘’What motivates me is that by the end of the year, you have money with you, which you see as your savings. Invest the money, you will even get interest, don’t spend people’s money and plan to pay back. Rather, invest it,’’ she said.
According to another Asaba resident, Theodora Unuafe, a financial expert, she advised carrying out a proper investigation before entrusting them with your money. She said ‘’I know a couple of persons who have absconded with osusu money because of lack of contentment, and most times greed, or they were not careful enough.
“Again, critically check customers’ records and also the workers’ record book to ensure that there isn’t any mistake or forgery. One thing about osusu is that it ensures I’m able to manage my resources well and save for rainy days. Much as we are humans, there is always an issue of trust, yet we always choose to take the risk.
Also, “always make sure the company or individual has a license or a registered business, this way you can trace the individual or company in case there are unforeseen circumstances. Lastly, don’t get too comfortable with your osusu collector, business should be firm and straight, no matter what.’’
Miss Adaeze Okoro shared her experience, saying her Osusu collector disappeared with their December contribution. “We didn’t hear from her again. Everyone lost their money during that period”.
Another respondent, Mrs Blessing Ade, said she has not personally been affected, but she knows people who have. ‘’Two of my neighbours lost their Osusu money last Christmas. The collector just vanished into thin air, no trace to date.
Miss Rita Chukwuma, who still participates in Osusu, said she protects herself by joining only trusted groups. “I know the collector well, and we record every payment. That is the only way I feel safe,” she said. She added that Osusu helps her save because she spends money easily when she keeps it herself.
Financial expert Mr David Nwoke recommended stronger measures to reduce fraud. He advised Osusu groups to keep proper records, select collectors with good reputations, allow more than one person to handle contributions, and use digital savings platforms to improve transparency and accountability.
