Lead Writer - Ibrahim Lawan
Before the PLANE W3 project, a project implemented by Save the Children with support from the Foreign Commonwealth and Development Office (FCDO), communities in Kauru, Soba, Ajingi, Makoda, Minjibir, Babura, and Malam Madori faced severe financial exclusion. There were no organised savings systems or accessible credit facilities. Both male and female-headed households believed they lacked sufficient resources to save or invest in their children’s education or future livelihoods. This financial vulnerability contributed to the high prevalence of out-of-school children across target LGAs, as families could not afford school fees or learning materials.
Formal financial services such as banks and microfinance institutions were either inaccessible or unaffordable because of financial charges and requirements, leaving households with no alternative but to adopt negative coping strategies, such as selling assets, borrowing at exploitative rates, skipping meals, or children from school. Survey conducted at the inception of the project revealed that most households had almost no savings, minimal access to credit, and low confidence in planning for future needs.
Introducing VSLA
Village Savings and Loan Association (VSLA) is a community-based financial model where 10–25 people save together and take small loans from those savings. VSLA activities run in cycles of about one year, after which members share out their accumulated savings and profits in proportion to individual contributions. This simple, self-managed system provides frequent small savings, flexible loans, and informal insurance (social fund), helping households smooth consumption, invest in livelihoods, and cope with shocks.
VSLA is an approach in Household Economic Strengthening (HES) to cushion the effects of poverty and provide households with sustainable livelihoods. Household Economic Strengthening aims to reduce families’ economic vulnerability and empower them to meet children’s essential needs. Poverty remains a significant barrier to education, often driving child labour and limiting school attendance. To address this, Save the Children Nigeria promotes the VSLA model, bringing together 15–25 community members with similar livelihoods to save and access loans, improving financial resilience and reducing reliance on harmful coping strategies.
Transformative Implementation and Scale
Save the Children Nigeria introduced community-managed VSLAs across project states, creating 74 operational groups in selected Local Government Areas (LGAs) in Kano and Jigawa States. These groups brought together 1,850 members (1,200 women and 650 men), with 80% being caregivers of children enrolled in Catch Up Clubs (CuCs) Literacy Boost/Numeracy Boost (LB/NB), and Accelerated Basic Education Programme (ABEP), including children with disabilities. Forty groups completed their first savings cycle and share-out, becoming fully self-managed. Thirty-four groups remain under the guidance of trained village agents.
Total savings: NGN 32,628,350.00 (GBP 17,300.29)
Social fund contributions: NGN 1,574,330.00 (GBP 834.75)
Shared out: NGN 39,708,965.00 (GBP 21,054.59)
Total Savings refers to the cumulative amount contributed by members throughout the VSLA cycle, including weekly savings, social fund contributions, fines, service charges, income from group businesses, and donations. Social fund contributions are a separate pool of funds contributed by VSLA members to provide mutual support during emergencies. Share-outs are the annual conclusion of the VSLA cycle during which members receive their total savings plus any profits generated by the group. These figures from total savings, social fund and share outs reflect not only financial growth but also the trust and commitment of communities to sustain the model.
Economic Empowerment and Household Stability
VSLA members consistently save, access soft loans, and invest in small businesses, creating predictable income streams and reducing vulnerability to shocks. Social funds and service charges support community education initiatives, including contributions of learning materials to local schools. Groups report on improved food security and dietary diversity, thanks to increased liquidity and better coping strategies.
Impact on Children’s Education and Well-being
Financial empowerment through VSLAs has directly improved education outcomes. Members actively monitor school attendance and mobilize resources to enroll orphans and vulnerable children. Caregivers now afford school uniforms, writing materials, and enrollment fees, while mainstreaming learners into formal schools after Catch Up Clubs
Literacy Boost/Numeracy Boost programmes.
Integration of child protection sessions within VSLA meetings has strengthened safeguarding practices at the household level. Improved financial stability also correlates with better health outcomes, including adherence to routine immunization following sensitization sessions conducted through VSLA platforms.
Systems Strengthening and Institutional Linkages
To ensure sustainability, Save the Children facilitated the registration of VSLA groups as cooperative societies, granting access to government-backed financial services and private sector support. These groups are now linked with State Social Protection Coordination Units (SOCU) and integrated into the State Social Register, positioning members for future social protection programmes.
This institutional recognition enhances visibility within local governance systems, unlocking opportunities for livelihood support, agricultural extension services, and broader financial inclusion initiatives.
Voices of Change
Before, I could not feed my children properly, not to mention sending them to school. But now, with the help of SCI and VSLA, I have a business (sales of grains in small quantities) that supports us. My children are in school, and I am proud to see them learning like other children. — Maida
I am deeply grateful for the opportunity the VSLA has given me. It has restored my confidence, improved my household income, and given my children a brighter future. I will remain forever thankful. — Sadiya
Why VSLA Integration Matters for Sustainability
The VSLA approach is more than a financial tool it is a catalyst for resilience, education, and community empowerment. By embedding VSLAs into education and child protection programmes, Save the Children ensures that resources invested yield lasting value. Families are not only meeting immediate needs but are building systems that sustain progress beyond project timelines.
