Ajoo by Scillafield

The informal employment sector in Nigeria is said to account for about 65-90% of the workforce and 65% of the GDP. Only a handful are covered by social insurance schemes, with most schemes targeted at the poorest in the population. This portends challenges as even the slightest fluctuations in the sector leaves such individuals to the risk of falling into poverty. These theories have been magnified with the COVID 19 pandemic 

Our solution is a tech-driven approach that mirrors age old institutions used for savings and social insurance, such as cooperatives and other methods of savings, and makes intuitive modifications on the basis of new tested practices.

With these efforts, we intend that with greater access to saving schemes, involvement in the financial markets, access to soft loans and financial inclusion, individuals who use Ajoo are more able to access social security options in time of need.

Nigeria has a burgeoning informal sector, which is expected to be the form of employment of up to 90% of the population in the near future. Amongst these individuals, social protection programs and safety nets are low, leaving them at risk of falling in to poverty and bearing the brunt of economic fluctuations. 

These challenges have included the failure in policy, the previous paucity in involvement of the private sector, and the revenue shortages experienced by Nigeria and the resulting shrinking of the economy.

Although over the last 10 years Nigeria has experienced increment in the size of the economy, there has been a paradoxical rise in the total number of people with an oscillation of individuals who are living in poverty, with individuals falling below the poverty line because of safety nets, which is often worse for individuals in the informal sector. 

It is thus important to develop safety nets, with ownership of the individuals in the informal sector, and coordinative activities between policy makers in Government and Investors in the private sector
https: // www .odi.org / sites / odi ....

The solution is targeted at individuals are employed in the informal sector, who work informal sector jobs in North Central Nigeria, using cooperative organizations as an insertion point. This is a heterogeneous population, with only a handful demonstrated to have any form of formal savings or social security net. 

A market survey is to be held through direct advocacy and focused group discussions with the respective heads and traders of the various units in the markets. This will be followed up with collation and analysis of what exactly a social investment program for traders will require.

By using our solutions, it provides these individuals with a link to banking their money with the benefit of security, easy accessibility and potential for interest through involvement in financial instruments and asset management. Also, education and enlightenment programs can be held with such traders about investment options that are on offer, to increase earnings and strengthen the safety net for such traders

The target population, informal sector workers primarily in the commodities market are a barometer to measure economic realities in Nigeria. Seeing the unique challenges experienced in 2020, they have been directly affected by the financial pressures of the pandemic and face the opportunity cost of being unable to perform their trade. 

The solution is designed as a resilient system with contribution models allowing access to social intervention schemes like small scale loans and long-term schemes like pensions. Modules with the best available information will be continuously distributed to users to foster behavioral change, laying the foundation for sustainability.

The solution will be specifically targeted at petty traders. It will build on more conventional savings methods like cooperative contributions and personal savings contributions. 

This introduces a financial technology option to individuals who previously have not been exposed to these options. Also, we intend to use various channels tech channels with such as USSD, mobile and web applications, and point of service card transaction machines in conjunction with traditional collection agents. 

This gives an edge over competitors in the fintech market like Piggybank, Kudabank and other options that operate in Nigeria as they are not designed to fit the needs of individuals in the informal sector

Since the introduction of technology to the finance sector in Nigeria in 2008, it has experienced a burgeoning of the market with various options. These options have ranged from payment options to banking strategies, utilizing various tech interfaces to facilitate banking. Also, solutions that have allowed for saving have been developed and have recorded major strides in market insertion. 

These fintechs solutions are forecasted to reach an estimated $ 543m by 2022, with a wide range of options to the end market users.
https: //nairametrics.com/wp-co ...

With the reforms in the financial sector and growth of the communications and IT sector in Nigeria, financial options have become more abundant. These have presented as strengthening of financial processes, opportunities to generate revenue, and tools to ease businesses in Nigeria. 

With this much movement, the “uncaptured middle” that represents individuals who are in the informal sector who do not have options that suit their needs. With the deployment of this option, we propound that more individuals will be able to utilize these options and preserve value. 

A credit system will also be integrated into the application, allowing individuals who have met a “credit score” access loans and other financial services in their time of need. These services will serve as an insurance net to preserve small businesses. Coordination with financial institutions will look to deepen financial inclusion, asset management and insurance services designed to cover for the fundamental needs and possibilities that may arise, especially with the prevalent economic instabilities 

A core part of the strategy will be to educate individuals and perform advocacy to communities that these petty traders are a part of, for the purpose achieving behavioral change towards saving and accessing financial options. With this, we will aim to achieve behavior modification that will lead to greater stability in the event of economic downshift.

As a first part, the solution will offer financial options to individuals who previously did not have them in such a connected, concerted fashion. A record and analysis of these activities and information collected will be a veritable tool that can be explored to determine the financial behavior of this demographic. Analytical outputs can be used to design policies and programs that are fitted to the realities of these individuals. 

Also, collaborative efforts between public and private financial institutions will to foster inclusion into financial projects which include such financial packages like insurance schemes, pension contributions, housing fund schemes and other options that are available.

We will use granular, easy to understand processes with the target being to be understandable by primary school users. The options will be provided in common English, Pidgin and in common Nigerian languages. Interfaces will also include USSD with prompts for select languages to aid understanding and utilization of the application.

For individuals who these options cannot reach, we will provide a different layer through agents who will be paid through an incentive model, to assist individuals make their contributions without hassle

The proposed solution to be built with an open API which will handle external requests to and from the applications database, through which transactions can be done, providing security through approval token. This will be generated and sent while withdrawals and other requests will be processed and approval tokens requests will be sent to the application API for approval.

All mobile applications will be designed for offline data capture, such that transactions can be recorded on reentry into areas of proper connectivity. Also, USSD options will be made available to the users

The solution will provide interfaces for designated agents to collect funds and complete transactions at various points of service, which will also be fitted with offline data capture. These agents will serve the purpose of facilitating transfer for individuals with low literacy and numeracy levels

Currently, our solution is in the idea stage and is being moved to development and the proof of concept stages. We thus do not serve any people

We intend to serve 8,000-9,000 people in our first year, with a target of 100,000 clients in five years. Following triaging amongst petty traders, we intend to scale up and include artisans and other informal sector workers.

Our goal is to deliver highly accessible, tech driven, market ready savings options for individuals in the informal employment sector in North Central Nigeria within the next 3 years. This will in turn provide safety nets for subscribers, with focus on short- and long-term financial options that include unemployment benefits and pensions schemes. 

We intend to, in the first year, solidifycooperative frameworks between us and financial institutions and government agencies whose primary responsibility is provision of financial services and options, bringing these services within reach of individuals within the demographic of the informal job sector.

Following our achievements within the first year of the project, we hope to replicate the idea for a wider subset of individuals in the sector, to include such individuals as subsistence farmers, service-based organizations, small SMEs across different states and Geopolitical regions in Nigeria

Nigeria is a high-risk investment country because of economic instabilities and policy regulations. Also, the lack of amenities that include internet coverage in various regions constitute a barrier to investment in tech and non tech related solutions 

To achieve our goal, a major obstacle will be financial liquidity. A sum of up to $ 90,000 will be required to perfect tech and non-tech solutions for such a project. Being a young company without adequate financial traction due to market hostility, this sum remains a major challenge to achieving our objective. 

Also, the policy framework regulating Fintech solutions in Nigeria are daunting, requiring several million dollars in capitalization and hundreds of thousands of dollars in licensing cost. These costs and other regulations constitute a limiting factor for tech solutions of financial natures. 

To surmount financial challenges, we will use a hybrid approach that will combine features for raising needed capital. These will include bootstrapping to get funds that will get us over the line with building and design of the needed tech, to participation in programs that expose the idea to donor funds and investors.

To bypass regulations, we will be exploring options within the framework of the Regulatory Sandbox, a safe corridor for innovation and competition that is managed by regulators. We will also explore partnership schemes with licensed local and international organizations that operate in Nigeria, providing us with license cover in a collaborative framework.

In addition to this, you need to know more about it.

5 fulltime
5 part time
1 contractor

Our team is comprised of young, dynamic individuals, committed to the common goal: being at the forefront of innovative solutions that will bring positive change to the lives of the people of Sub-Saharan Africa.

We are peopled by individuals with a wide range of skills, obtained in their time working on social projects like HIV programs in different regions in Nigeria, capacity building and financial inclusion projects in crisis regions in North-East Nigeria. Combined with this, we also have staff with IT skills who has transcribed thought to IT realities for clients. Together, we use diligent research and critical analysis to identify opportunities and best insertion points for such opportunities. This mix gives us an interesting mix of skills and insight into the social projects and IT opportunities that can be explored to generate revenue and contribute to the improvement of indices of the people of Sub Saharan Africa. 

Finally, we are guided with assistance by consultants with over 10 years of experience in social development and financial sectors. They provide invaluable insight and a wealth of experience to guide steps, nurture ideas and direct innovation

No partners as yet

Our business is shaped around the principles guiding social entrepreneurship, to provide solutions around challenges as experienced by communities in sub-Saharan Africa while creating value for the end user and investors. 
We have been primarily run business to business services, with a target of directly solving common social challenges on individual levels with the target being the people in these regions in a business to client model. 

The Ajoo application by Scillafield is designed to deliver services into a population not previously served by with financial solutions, in a safe and convenient manner. This opens them to a world of offers that existence within the frame of the fintech. These offerings include insurance schemes, pensions services and investment opportunities.

Financing that will be raised by internal sourcing and grant or investment funding will be used for application development, deepen market research and analysis, and strengthening of processes to improve outcomes in line with reaching our goals of covering individuals in different microcosms of the informal sector of Nigeria.

In coordination with self-funding to achieve primary milestones like application development and market analysis, we intend to achieve financial stability through a fee for service model, firstly by providing free access to the application services, then including charges per transaction.

We will also be strengthening all processes and operations to improve efficiency and functionality, making us more and more accessible to low income clients, thus widening the net of coverage of services.

Finally, we will be looking to partner with stronger players in the financial and investment sectors to provide funding to facilitate achievement of milestones within the allotted time frame for achieving our goals. 

We have as yet not raised funds

We hope to raise the sum of $90,000 through grant funding within the next 1 year, to strengthen penetration into the market and widen the coverage net.

Labor - $60,000

Application development – $10,000
Advertisement - $5,000
Legal - $5,000
License fees - $10,000

The Mission Billion Challenge WURI West Africa Prize are interested in solving a challenge that is of massive concern to Scillafield Solutions and constitutes a huge opportunity to create value for Nigerians and people of sub-Saharan Africa.

Scillafield Solutions, good intentioned, at this time neither have the financial capacity or the access to policy makers and industry captains who have the capacity to effect such change. This challenge can serve as a lifting pad for such a solution.

We will require individuals with industry experience to provide financial commitment and guidance on how best to optimize such finances.

Also, considering convolutions within the policy framework surrounding the financial technologies in Nigeria, it is important to ensure participation and collaboration with agency responsible for, or capable of, influencing policy

Finally, financial institutions already have programs with varied benefits for formal sector workers. With proper collaboration, such agencies, riding on their strategies to establish reach and value for such organizations

• World Bank
• Nigerian Social Insurance Trust Fund
• Central Bank of Nigeria
• Asset management corporations in Nigeria
• Financial solutions corporation
• National Pensions commissions
• Pensions servicing corporations
• Telecommunications corporations