In a bid to improve the financial well-being of Nigerians and create a wholesome experience for its users, both existing and new, Baobab Nigeria has launched Jollof+, a savings application that enables users to save efficiently under various plans and earn interest while doing so.
The platform is designed to provide individuals, families, and groups with easy access to high-interest savings accounts, fostering a savings culture and reducing the impact of inflation on their funds.
Jollof+ offers four savings options:
- Jolloflock: This time deposit option allows users with medium- to long-term savings goals to lock their funds and earn interest. The net interest rate for this option is 21.6% per annum and is paid upfront.
- Ajo+: This target savings option allows groups or individuals to save towards a goal. The maximum net interest rate for this option is 16.5% per annum.
- BabyBox: Designed for parents to save towards the future of their children, both born and unborn. This option helps parents prepare financially for future expenses, such as education. The maximum net interest rate for this option is 15.5% per annum.
- Jolloflex is a flexible savings account where users can save and access their funds at any time. This option offers a net interest rate of 10% per annum.
Jolloflock, Ajo+, and BabyBox are all timed (fixed) deposits, while Jolloflex is not. According to the Baobab Nigeria team, all interests on the various savings options are net, not gross, and they do not have any hidden charges or taxes, thereby contributing to their high interest rates.
Speaking to customers and members of the media at the launch, the Baobab Nigeria team, led by Eric Ntumba, acting CEO of Baobab Nigeria, highlighted that Jollof+ offers users the highest interest rates available in the Nigerian market.
Adesola Adegbite, Product Manager at Baobab Nigeria, gave a walkthrough of the product, showcasing the product interface and the registration process. He also demonstrated the know-your-customer (KYC) verification process, which aligns with regulatory requirements and industry standards.
The Baobab Nigeria team emphasised that the platform is well-secured to receive customer funds, employing best practices in the development of the application and implementing necessary checks to prevent any security breaches.
Touching on how they came to offer the highest interest returns on savings in the country, Eric Ntumba said, “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 analysed 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. However, rates can evolve depending on the signal the MPR gives. If the MPR goes down, we will, of course, re-adjust those rates accordingly.”
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Ntumba added that for ongoing fixed deposits on Jollof+, the MPR won’t affect interests. “For time deposits that are locked, it's a contract you have from the time you lock it. This is why we pay you the interest upfront.
Maybe the trend now is to see the MPR going up, but you also have periods where the MPR goes down. So if you took a time deposit, it's locked. Even if the MPR goes down, you have an interest already capitalised. So you won't be affected.
When it comes to more flexible options like Jolloflex, the rates might change over the course of the savings journey. Since it is the most flexible account, we can decide to either increase or decrease the rate.”
He concluded by saying that the interest is the cherry on top of Jollof+, as their overall goal is to make life simpler for the user.
