ABSTRACT
In the pre-banking era traditional financial institutions served Nigerian communities relatively well and performed some of the functions of modern banks though in an unrefined and limited manner. This chapter examines the different types of traditional financial institutions, their objectives, how they are organised, managed and how they function as well as the causes for their unabated proliferation. The most popular and most widespread of traditional financial institutions are those engaged in savings, loan and mutual-aid schemes. Although the organisation and management are simple, varying from locality to locality, the pattern of administration is a crude version of the modern financial administration. Like the modern financial institutions saving is voluntary; members are admitted into the isusu organisation on a voluntary basis. In some of the isusu organisations the amount to be saved monthly or fortnightly is determined by the members of the association in order to make recording easy.
