Certified Daily Contribution Collectors Registry (CDCCR) Program

A strategic alliance tool for creating jobs and internal revenue for States and Local

Government Areas in Nigeria.

R.P.14,111

Implementing Agency

Who we are:

• 2001: A patent was granted the concept known as Financial Support Contribution (FSC).

• 2003: Microcredit Solutions Limited was incorporated as the implementing agency of the concept.

The FSC Concept

• Financial Support Contribution is a thrift/savings solution service designed to cultivate the savings culture amongst individuals and create access to start-up funds for micro-small and medium scale enterprises (MSME).

• Before the patent, it was known traditionally in Nigeria as Ajo’ in the west, Adashe’ in the north, and Isusu in the southern Nigeria states.

The Untapped market

• We had millions of daily contribution collectors scattered all over Nigeria before the patent.

• But there was no recognised system of articulating or coordinating the activities of these collectors.

• Hence, the rampart cases of fraudulent collectors in the system.

The Idea

• In the light all of these, a patent was applied for and granted by the Design, Trade mark and patent department of the Federal Ministry of Commerce .

• The idea was to revamp and secure the services of isusu, ajo’ and adashe as it was popularly called.

Challenges

• This unique concept was not without its own challenges, which explains why for a long time nothing was known of the concept.

• However, we have learnt the ropes over time, through scaling many huddles in the rough terrain of Nigeria’s financial market.

Prospects:

• The FSC concept is strategic to creating jobs and generating internal revenue through our newly designed model;

• 4-WIN ALLIANCE.

• The stake-holders of the 4-WIN ALLIANCE are:

4-WIN STAKE- HOLDERS

• MSL- Patent Owner/Implementing agency

• STATE / LGA –Funding

• BANKERS – Official Revenue Custodians

• OPERATORS – Contribution Collectors

How it works

• MSL : partners to provide the opportunity, recruitment, training, certification, supervision of the program.

• LGA: The Council will partner to provide funding.

• BANKERS: will collect and keep all revenues generated while paying a compound interest to the pool of funds.

• OPERATORS: will be properly equipped unlike previously, they will enjoy free marketing and publicity, they will be trained to run a segmented and uninterrupted market location, they will also benefit from the BPI pool generated interest. They will also sell all the 6 concepts patented under the FSC model instead of 1.

• SUBSCRIBERS: They will enjoy a secured and certified services brought directly to their proximity to help them access start-up funds/thrift or save monies daily.

The FSC Services

• Guaranteed Daily Support Contribution GDSC (Type A & B)

• Weekly Support Contribution (WSC)

• Bi-Weekly Support Contribution (BWSC)

• Monthly Support Contribution (MSC)

• Bi-Monthly Support Contribution (BMSC)

• Certified Daily Contribution Collectors Registry (CDCCR)

Guaranteed Daily Support Contribution – Type A

• A subscriber of this type saves on daily bases for 30/31 days and receives their total contribution monthly minus a 3% service charge.

• The subscriber may still wish to continue the subscription daily for 90 days , 180 days, and 365 days respectively.

Guaranteed Daily support Contribution – (Type B)

• This is the type where subscribers 1-12 will contribute a mutually agreed sum to support or start up a new business. i.e.

• 12 subscribers who wish to contribute a daily –type B of N2,000.00 will do as follows: 2000 x 12 = 24000 x 31 days = 744,000.00 monthly will be paid to each of the group members minus a 3% service charge.

Weekly Support Contribution (WSC)

• WSC is the type of contribution scheme of any amount money N1-and above, between 52 subscribers every week throughout the 52 weeks of the year. The analysis for this is as follows:

• N2,000 x 52 subs = 104,000.00.

• Each contributor is paid 104,000 minus 3% service charge weekly.

Bi-weekly Support Contribution (BWSC)

• BWSC is the type contributed bi-weekly, i.e. 26 contributors contributes for 26 alternate weeks in the year. It designed for heavy contributors. This is also of any amount of money between N1 and above. i.e:

• 10,000.00 x 26 subs = 260,000.00. Each person in this program is paid 260,000.00 every alternate week.

Monthly Support Contribution (MSC)

• This is the type of contribution between 12 contributors, it’s drawn from the 12 months in the year with income earners in mind. It’s as follows:

• 20,000.00 x 12 participating member contributors =240,000.00 This is contributed monthly for each member of the group.

Bi-Monthly Support Contribution (BMSC)

• This type is between 6 contributors and it’s contributed alternately amongst the subscribers every two weeks and it’s made for heavy users,

• 20,000.00 x 6months =120,000.00 will be paid monthly each contributor.

Certified Daily Contribution Collectors Registry (CDCCR)

• This is the central biometric registry and database that articulates the activities and records the details of daily contribution collectors and their guarantors who are usually land-owners in their segmented areas of operation. The CDCCR licence to operate a given market segment is sold as a complete bundle of the FSC.

Revenue Projections

• The revenue projection for the project is based on current status of the market for these services as at present.

• We researched with the N50.00 denomination which is the lowest subscription in the market for now.

• The study report is as follows:

N50.00 in GDSC type-A Subscription

• A contributor subscribes for N50.00 for a duration of 30 or 31 days.

• N50.00 x 30 days = N1,500.00.minus service charges:

• Registration (Annually) = N50.00• 3% or 1Day subscription = N50.00• Bank pool interest (BPI) = 15.05 @ 1%

compound interest. Note that this can be negotiated to constantly increase as the pool increases.

Accruals from the N50.00 GDSC Type-A subscription

• Service charge N50.00 + N50.00 from registration +15.05 as 1% BPI = N115.05

• Multiply this sum N115.05 by 100 subscribers = 115.05x100 = 11,505.00

• Let’s now assume that we have registered 300 operators in a segmented market area i.e. 11,505.00 x 300 = 3,451,500 .00 would be generated as service charge monthly.

N500.00 in GDSC Type-B Subscription (Mutual Capital)

• 1-12 Daily income earners teams up to contribute the agreed sum of N500.00 daily for themselves. This is done usually after due diligence check on each member of the group to certify their capacity and security. Each would provide one guarantor and a next-of-kin for the records that meets the stated criteria.

N500.00 in GDSC Type-B Subscription (Mutual Capital)

• N500.00 x 12 = 6,000.00 x 31 days = N186,000 will be paid monthly to each member of the group. The contributions are collected daily and are paid into the BPI Account attract the minimum of 1% = 1,860.06 Now, our service charge becomes 3% of N186,000 = 5,580,00 + 1,860.00 = 7,440.00 drawn from each contributing member monthly i.e. 7,440.00 x 12 = 89,280.00

• Let’s now assume that our registered 300 operators in a segmented market area is to sell this product to only 100 groups in one given year.

• That will be amounting to:N89,280.00 x 100 = 8,928,000.00 as total revenue generated from this type. Please also note this type is the most lucrative and that we can triple this target. Plus the cost subscription cards – not indicated

Weekly Support Contribution subscription of N2,000.00

• N2,000.00 x 52 subs = N104,000.00 minus S/C of 3% = 3,120.00 weekly.

• N3,120.00 x 52 weeks = N162,240.00• Let’s assume as always that our target

sales for this type is 100 different subscriptions = 16,224,000.00 plus the cost for subscription card @ N100.00 each = N520,000.00 + 16,224,000.00 = 16,744,000.00

Sales of operating License of LGA’s

• This is under the CDCCR package, for the essence of spread and tactical control of the huge market before us, we are looking at the least 500 operating LGA’s.

• The content of each CDCCR package is a 90 day set-up and transfer bundle which includes: capacity building & certification of operators in the area, Opening of BPI account for the area & supervision.

operating License of LGA’s

• The licensee provides her own office and logistics in the area,

• The cost of one license will be 7.5million naira only.

• Plus a monthly 2% accruals from the BPI of the area as regular royalties. The duration for this license is 3 years only.

• 7.5million x 500 targeted areas = 3,750,000,000.00

SUMMARY

• The FSC services bundle can be sold to generate revenue for LGA’S and trap funds in banks. There are lots of opportunities in this project, as daily contribution and thrift services operators continues to grow in the industry.

• Currently from our researches there are about 700 collectors in Enugu, over 1200 in Onitsha, 5,665 in Lagos state, 455 in Abuja FCT, in Calabar we have 988 collectors. From our database we have access to this number and the identification and certification still continues…

• The Patent Certificate No: R.P. 14,111

Microcredit Solutions Limited (INCERT)