Community Stories December 12, 2024 8 min read

How a Lagos Women's Group Built ₦5M Savings Fund in 18 Months

An inspiring case study of 45 women who transformed their financial futures through disciplined saving.

Chioma Adeyemi

Community Development Officer & Case Study Documentarian

The Beginning: A Vision Shared

In January 2023, 45 women from Yaba, Lagos came together with a bold vision: to collectively save ₦5,000,000 in 18 months. Most were petty traders, market women, and small business owners earning between ₦20,000-₦100,000 monthly. Many had never participated in formal savings before. Yet they believed that together, they could achieve what seemed impossible individually.

This is their story—and the strategies that made it possible.

The Strategy: Break It Down

The first thing the group did was break their ambitious goal into manageable pieces:

  • Target: ₦5,000,000 in 18 months
  • Monthly: ₦277,778 (about ₦6,173 per person weekly)
  • Weekly: Each of 45 members saves ₦2,500 minimum
  • Extra: Members could contribute additional amounts beyond the minimum

Key Success Factors

1. Strong Leadership & Clear Rules

The group elected a 5-member management committee with clear roles: chairperson, treasurer, secretary, loan officer, and auditor. They created detailed written rules covering contributions, penalties, loan policies, and meeting procedures. Every member signed the rules document, creating accountability from day one.

2. Weekly Meetings & Accountability

Every Thursday evening, all members met to make their weekly contributions. These weren't boring transactions—they were community gatherings. The group added social elements: light refreshments, birthday celebrations, and informal financial discussions.

The regular rhythm created peer pressure in a positive way. Missing a contribution meant explaining yourself to your peers. Members didn't want to let their "sisters" down.

3. Financial Transparency

The treasurer maintained a detailed ledger, and monthly statements were shared with all members. The group also hired an independent auditor quarterly. This transparency prevented corruption and built trust.

4. Penalties for Non-Compliance

While the group was supportive, they also enforced rules fairly:

  • Missing one week: ₦500 fine
  • Missing two consecutive weeks: ₦1,000 fine + meeting with committee
  • Missing three weeks: Suspension pending review

Penalties were harsh enough to matter, but fair. Over 18 months, the group only suspended one member (who was dealing with serious family issues and eventually rejoined after three months).

5. Interest Distribution

The group lent some of their accumulated savings to members at 12% annual interest. They distributed the earned interest back to members quarterly. This incentivized more savings and showed members the power of their collective money working for them.

The Results: Beyond the Money

By June 2024 (18 months later), the group had achieved ₦5,200,000. But the real impact went far beyond the numbers:

Impact Statistics:

  • 28 members accessed loans for business expansion or emergencies
  • Average member income increased by 35% within two years
  • 12 members invested in small businesses (eateries, tailoring, phone shops)
  • 15 members invested in children's education
  • 42 out of 45 members said it transformed their financial confidence

Lessons for Your Group

What can your group learn from the Yaba Women's Group's success?

  1. Set ambitious but achievable goals with clear timelines
  2. Create and enforce fair rules that apply to everyone
  3. Meet frequently (weekly is ideal) to maintain momentum and accountability
  4. Practice radical transparency with financial records
  5. Reward members with interest distribution—make savings tangible
  6. Build community, not just a savings scheme

The Future

The Yaba Women's Group didn't stop at ₦5M. They've since:

  • Started a second savings cycle targeting ₦10M
  • Created a mentorship program for newer groups
  • Partnered with a microfinance bank for larger loans
  • Established a scholarship fund for members' children

Conclusion

The Yaba Women's Group proves what's possible when women come together with a vision, clear strategies, and unwavering commitment. ₦5 million wasn't built overnight—it was built ₦2,500 at a time, week after week, by women who believed in themselves and each other.

Your group can achieve something similar. Start today, commit to the process, and watch your collective dreams become reality.

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