A 30-year-old thrift collector, Mary Towolawi, was arraigned before a Badagry Chief Magistrates’ Court in Lagos on Monday, December 22, 2025, facing charges of allegedly stealing and converting N4.8 million belonging to her clients. The case, prosecuted by the police, highlights critical vulnerabilities within informal and microfinance savings systems that millions of Nigerians rely on.
The prosecutor, ASP. Edet Ekpo, detailed that the alleged offences occurred over a significant period—from January 2022 to October 2025—while Towolawi worked as a thrift collector for the LAPO Microfinance Bank in Badagry. Thrift collectors, known locally as “ajo” or “esusu” agents, play a vital but high-trust role in communities. They are entrusted with collecting daily or weekly savings from individuals, often low-income earners, who may lack access to or comfort with formal banking. The system operates almost entirely on personal trust and handwritten records, making it inherently susceptible to malpractice.
The specific charges against Towolawi are “stealing and conversion.” Legally, “conversion” is a distinct civil and criminal wrong involving the unauthorized assumption of the right of ownership over someone else’s property. In this context, it means the defendant is accused not just of taking the money, but of using it for her own purposes as if it were hers, a serious breach of her fiduciary duty. The prosecution alleges she stole money “kept under her care” and converted it to personal use.
The case falls under Section 287 of the Criminal Law of Lagos State, 2015, which deals with stealing. The punishment upon conviction can be up to three years imprisonment, depending on the value and circumstances, underscoring the gravity with which the law views such breaches of financial trust.
In court, the defendant pleaded not guilty. Chief Magistrate Mr. A. J. Aina granted her bail set at N500,000 with two sureties in the same amount. Notably, one surety must be a recognized community leader. This bail condition is strategic; it leverages social capital and community accountability, ensuring the defendant has ties to the community she is alleged to have defrauded and that respected figures vouch for her court attendance.
The case has been adjourned until January 26, 2026, for mention—a procedural hearing to track progress before a potential trial.
Broader Context and Implications
This incident is not an isolated one. It sheds light on systemic risks within the thrift collection ecosystem:
- The Trust Deficit: Such cases can erode community trust in informal savings mechanisms, potentially pushing people to keep cash at home, which is riskier.
- Regulatory Gaps: While microfinance banks are regulated, the activities of their field agents—especially thrift collectors—can be difficult to monitor in real-time, creating opportunities for fraud over long periods, as alleged here.
- Consumer Protection: Victims in such schemes often face lengthy legal processes to recover funds, if recovery is possible at all. It raises questions about the safeguards and insurance mechanisms microfinance institutions have for clients’ money in the custody of agents.
For the public, this case serves as a crucial reminder to:
1. Verify the credentials of any savings collector.
2. Insist on receiving official, serialized receipts from the parent financial institution for every deposit, not just handwritten notes.
3. Periodically confirm their balance directly with the microfinance bank.
4. Report irregularities immediately.
The outcome of this case will be closely watched by communities in Badagry and the microfinance sector, as it tests the mechanisms of justice and accountability in protecting the savings of the economically vulnerable.
Source: NAN News. Edited by Sandra Umeh.
