Sylvia Duruson
In a bid to enhance the financial well-being of Nigerians, Baobab Nigeria has introduced an innovative savings application called Jollof+. Designed to enable users to save efficiently while earning competitive interest rates, the platform caters to individuals, families, and groups, providing easy access to high-interest savings accounts. The goal is to foster a savings culture and mitigate the impact of inflation on people’s funds.
Jollof+ offers four distinct savings options tailored to different financial goals and preferences. First, there is Jolloflock, ideal for medium- to long-term savings objectives. This time deposit option allows users to lock their funds and earn an upfront net interest rate of 21.6% per annum. Next is Ajo+, which facilitates target savings. This option enables groups or individuals to save towards a specific goal, with a maximum net interest rate of 16.5% per annum.
For parents looking to prepare financially for their children’s future expenses, such as education, there is BabyBox. This option offers a maximum net interest rate of 15.5% per annum. Lastly, Jolloflex is a flexible savings account that allows users to save and access their funds at any time, offering a net interest rate of 10% per annum. It’s worth noting that Jolloflock, Ajo+, and BabyBox are timed (fixed) deposits, while Jolloflex is a flexible account. The Baobab Nigeria team emphasized that all interest rates on the various savings options are net, without any hidden charges or taxes, contributing to their attractiveness.
During the product launch, Eric Ntumba, the acting CEO of Baobab Nigeria, highlighted that Jollof+ offers users the highest interest rates available in the Nigerian market. Adesola Adegbite, the Product Manager, provided a comprehensive walkthrough of the product, demonstrating the user interface, registration process, and the know-your-customer (KYC) verification process, which aligns with regulatory requirements and industry standards.
Addressing the security concerns, the Baobab Nigeria team assured users that the platform employs best practices in application development and implements necessary checks to prevent any security breaches, ensuring the safety of customers’ funds. Explaining the rationale behind offering the highest interest returns on savings, Eric Ntumba stated, “We look at the evolution of the Monetary Policy Rate (MPR) of the Central Bank of Nigeria (CBN) because it sets the benchmark for both lending and credit interest rates. We also analyzed all the actors in the market. When we say that we offer the best rate, it is indeed the highest rate currently available in the market.”
Ntumba further clarified that for ongoing fixed deposits on Jollof+, the MPR would not affect the interest rates, as they are locked in at the time of deposit. However, for more flexible options like Jolloflex, the rates might change over time, reflecting market conditions. With Jollof+, Baobab Nigeria aims to simplify financial management for users while providing attractive returns on their savings, fostering a culture of financial discipline and growth.
