summary

At this point it is important to bring into focus the traditional aspects of Yoruba economy that has survived even today. In doing this, I have relied a little bit on the work of Dr. Toyin Falola, an important historian who lives and works in the United States.  His book,Culture, Politics, and Money among the Yoruba,gave me useful insight into traditional Yoruba system of saving money.
ESUSU: Is a large scale cooperative among Yoruba traders and merchant of a couple of centuries back probably during the time of Alaafin Abiodun in the 18th Century. Essentially, members contribute money as if into a savings account. Members may reach about two hundred and each member must contribute into the esusu bank. There is usually a head of this cooperative and each member is required to contribute, at least, ‘one hand’ to the esusu bank. The head of the cooperative is allowed to keep aside ‘one hand’ as a safety valve against default. This provides a great security for the fund except, of course, when the head of the esusu becomes greedy and keeps the ‘one hand’ for himself. Esusu is important in that it helps members during the time of financial problems, marriage, funeral, and religious functions. All these require money and the esusu member could request for his or her money to take care of the financial obligation. Esusu also helps to narrow the gap between the rich and the poor. The Babalawo determines who gets to collect the money in the account during a particular cycle, and in Oyo, cases of cheating where punishable. The anger of Sango, and Ogun where usually invoked against the culprit. Typically, in the case of Sango, the god of thunder and lightning, apparently lightning would be invoked to strike the culprit dead.

AJO: This is another form of savings among the Yoruba people. Ajo is similar to Esusu but the only problem it has is that of cheating and embezzlement. I am sure that we have all heard horror stories of a typical ‘Baba Alajo’ (the man who manages the fund) skipping town with the money he has collected from everyone!