Abstract This paper examined the relationship between moral accountability and the sustainability of indigenous finance, with specific reference to Ajo in Iboro community. Ajo, a long-standing rotating savings and credit arrangement among the Yoruba of south-western Nigeria, has traditionally operated on trust, shared responsibility, and communal reputation rather than formal legal enforcement. In recent years, however, concerns have emerged within Iboro regarding contribution default, weak documentation, leadership opacity, and declining communal sanctions, raising questions about the long-term stability of the system. The problem addressed in this study was the gradual erosion of moral responsibility among participants and coordinators, which has begun to undermine trust and collective confidence. The study focused on Ajo operations within Iboro community, examining issues of transparency, accountability, reciprocity, and social enforcement. A qualitative approach was adopted, drawing on semi-structured interviews, focus group discussions, participant observation, and relevant scholarly literature on indigenous finance and moral economy. The findings revealed that although Ajo remained economically useful and socially valued, its sustainability was increasingly threatened by economic hardship, shifting social values, and inadequate accountability structures. The study concluded that strengthening moral discipline, transparent record-keeping, rotational leadership oversight, and community-based dispute resolution mechanisms are essential for preserving both trust and continuity in indigenous financial systems.
Popoola et al. (Thu,) studied this question.