Informal Saving Group: A Pathway to Financial Inclusion among Rural Women in Nigeria

Main Article Content

Chizoba Obianuju Oranu
Ogochukwu Gabriella Onah
Elizabeth Nkhonjera

Abstract

Financial inclusion is a key to economic development and has continually gained increased attention across countries, particularly in developing countries where there is relatively high rate of financial exclusion. In Nigeria, despite several measures taken to promote financial inclusion, there is still high rate of financial exclusion among rural women, as rural people and women are generally more financially excluded. This article provides an overview of financial inclusion, analysis of the patterns and dynamics of financial inclusion in Nigeria and the pathway for promoting financial inclusion among rural women is discussed. The article posits informal savings groups as a potential pathway to financial inclusion among rural women, by reviewing journal articles and grey literatures. The review shows that most rural women are participating in informal saving groups, but these saving groups are however faced with some challenges, such as limited income base, inability to receive remittance and vulnerability to theft. The pathway to financial inclusion among rural women discussed include, sensitizing these rural women through financial literacy, thereafter fostering informal saving groups which most rural women are already aware of their operations and thirdly, linking these groups to formal financial institutions. We conclude that informal saving groups have great potentials of accelerating financial inclusion among rural women, therefore Government should carry out financial literacy campaigns among rural women and policies that promote financial inclusion should be designed building on informal saving groups.

Keywords:
Informal saving groups, rural women, financial inclusion and Nigeria

Article Details

How to Cite
Oranu, C. O., Onah, O. G., & Nkhonjera, E. (2020). Informal Saving Group: A Pathway to Financial Inclusion among Rural Women in Nigeria. Asian Journal of Agricultural Extension, Economics & Sociology, 38(12), 22-30. https://doi.org/10.9734/ajaees/2020/v38i1230484
Section
Minireview Article

References

Kama U, Adigun M. Financial inclusion in Nigeria: Issues and challenges. Occasional, Central Bank of Nigeria. 2013; 45.

Holloway K, Niazi Z, Rouse R. Women’s economic empowerment through financial inclusion a review of existing evidence and remaining knowledge gaps. Innovations for Poverty Action; 2017.

Demirguc-Kunt A, Klapper L, Singer D. “Financial inclusion and legal discrimination against women: evidence from developing countries,” Policy Research Working Paper WPS6416, Washington DC: The World Bank Group; 2013.

World Bank. “UFA2020 Overview: Universal Financial”; 2017.
Available:http://www.worldbank.org/en/topic/financialinclusion/brief/achieving-universal-financial
Access by 2020 (May 20, 2017).

Sajuyigbe AS. Influence of financial inclusion and social inclusion on the performance of women owned businesses in Lagos State, Nigeria. Scholedge International Journal of Management and Development. 2017;4(3):18-27.

Holloway K, Niazi Z, Rouse R. IPA Women’s economic empowerment through financial inclusion a review of existing evidence and remaining knowledge Gaps; 2017.

Waller M. Empowering women through savings groups: A study from the Wellness and Agriculture for Life Advancement (WALA) Program; 2014.

Nair T. Report on state of financial inclusion in Kerala; 2014.
Available:https://www.themix.org/sites/default/files/publications/report_on_state_of_financial_inclusion_in_kerala.pdf

Central Bank of Nigeria (CBN). Annual Report. National Financial Inclusion Strategy; 2015.

Demirguc-Kunt A, Klapper L, Singer D. Van Oudheusden P. The global findex database 2014: Measuring financial inclusion around the world (English). Policy Research working paper; no. WPS 7255. Washington DC: World Bank Group; 2015.
Available:http://documents.worldbank.org/curated/en/187761468179367706/The-Global-Findex-Database-2014-measuring-financial-inclusion-around-the-world

Mugisha E, Connell C. “Program resource team study: How does savings for life impact household gender?” World Relief; 2017.
Available:www.worldrelief.org

Adenugba AO, Raji-Mustapha NO. The role of women in promoting agricultural productivity and developing skills for improved quality of life in Rural Areas. IOSR Journal of Engineering (IOSRJEN). 2013;3(8):51-58.

World bank. Global Financial Inclusion (Global findex); 2017.

Central Bank of Nigeria (CBN). National Financial inclusion strategy. Summary Report; 2012.
Available:https://www.cbn.gov.ng/Out/2012/publications/reports/dfd/CBN-Summary%20Report%20of-Financial%20Inclusion%20in%20Nigeria-final.pdf

CBN. Financial inclusion newsletter. 2nd Quarter. 2019;4(2).

EFiNA. Key Findings: EFInA Access to Financial Services in Nigeria (A2F) Survey; 2016.
Available:https://www.efina.org.ng/wp-content/uploads/2019/03/Key-Findings-A2F-2016.pdf

OECD/INFE. OECD/INFE International survey of adult financial literacy competencies. Paris: OECD; 2016.

Allen BS. State of practice report: Savings Groups and the Dynamics of Inclusion; 2018.

EFiNA. EF In A Access to Financial Services in Nigeria Survey; 2010.
Available:https://www.efina.org.ng/wp-content/uploads/2018/12/EFInAAccess-to-Financial-Services-in-Nigeria-2010-surveyKey-Findings.pdf

FAO. The group savings resource book; 2002.
Available:http://www.fao.org/tempref/docrep/fao/005/y4094E/y4094E00.pdf

Seibel HD. Microfinance in Nigeria: Origins, options and opportunities. Köln: University of Köln; 2004.

Retrieved 2017-03-23.
Available:https://www.odi.org/sites/odi.org.uk/files/odi-assets/events-documents/126.pdf

Iganiga BO, Asemota A. The Nigerian unorganized rural financial institutions and operations: A framework for improved rural credit schemes in a fragile environment. Journal of social sciences. 2008;17(1):63-71.

Oluyombo OO. The impact of informal microfinance on enterprise financial crises. conference on coping with crisis: Re-evaluating the role of crises in economic and social history. Durham University, United Kingdom; 2013.

Karlan D, Savonitto B, Thuysbaert B, Udry C. Impact of saving groups on the lives of the poor. Proc Natl Acad Sci U S A. 2017;114(12):3079-3084.
DOI: 10.1073/pnas.1611520114

Mader P. Rise and fall of microfinance in India: The Andhra Pradesh crisis in perspective. Strat Change. 2013;22(1-2): 47-66.

World Bank. Global Financial Inclusion (Global findex); 2018.