Micro-Savings and Poverty Reduction in Nigeria: Some Field Observations from Gokana Local Government Area of Rivers State

Abstract

This study had the objective of investigating issues relating to micro-saving and how it can be employed to reduce poverty in Gokana Local Government Area of Rivers State, Nigeria.  A field survey was conducted in which primary data were collected using a structured questionnaire.  A total of 102 micro-saving cooperative members were interviewed.  Based on descriptive statistics tools of percentages and simple averages, the study reveals that micro-saving is a veritable source of raising funds for investment. Also, lack of access to formal financial institution makes people to patronize micro-savings in Gokana LGA. Again, respondents engaged in micro-savings for emergencies and unexpected investment purposes while cultural obligations induce respondents to engage in micro-saving and more. It is therefore suggested that an enabling macroeconomic environment be given to informal financial sector of Nigeria. This can be achieved by encouraging members of the micro-saving cooperatives to register at least at the local government council to promote assistants from the government on their operations.

Keywords: Gokana, Micro-Savings and Poverty Reduction