Comparative Analysis of Savings Behaviour of Co-Operative and Non-Co-Operative Farmers in Bayelsa State, Nigeria (Published)
The paper comparatively analyzed savings behavior of co-operative and non-co-operative farmer in Bayelsa State of Nigeria. The objectives of the paper were to compare the amount and frequency of savings of co-operative and non-co-operative farmers; to compare the determinants of savings among co-operative and non-co-operative farmers; and to determine the relationship between the co-operative membership and propensity to save among co-operative and non-co-operative farmers in the State. The population of the study comprised of 500 members of fifteen purposively selected registered farmers’ multipurpose co-operative societies in Bayelsa State.Descriptive survey research design was adopted. A total sample of 444 respondents (222 cooperative farmers and 222 non-cooperative farmers) was selected using multi stage sampling technique. Both primary and secondary data were used for the study. Data obtained were analyzed using descriptive statistical tools of mean, table, frequency distribution, mean percentages. Three hypotheses were formulated and tested using multiple regression models and the study revealed that cooperative membership stood out as a significant determinant of savings in the comparison of cooperative and non-cooperative farmers. Furthermore, there is a significant difference in both amount and frequency of savings of cooperative and non-cooperative farmers. Co-operative farmers saved more than non- co-operative farmers. The study concluded that cooperative membership have strong effect in the propensity to save. It was recommended that co-operative societies should be seen as critical partners in economic empowerment and be given a pride of place in different economic sectors in Bayelsa State.
Nigeria as a developing nation needs adequate savings to encourage investment and promote economic growth. Empirically, this work has made an attempt to analyze the impact of savings and investment on the growth of the Nigerian economy. From the result of the study conducted within the period 1970 to 2015, using a battery of contemporary econometric approach involving unit root test, co-integration test and error correction model it was found that factors such as Gross Domestic Savings (GDS), Gross Fixed Capital Formation (GFCF), Labour Force (LAF) and Savings Facility (SF) are the main drivers of economic growth in Nigeria. Furthermore, evidence from the investment model shows that Real Gross Domestic Product and Gross Domestic Savings (GDS) are the two drivers of Investment in Nigeria. This means that if there is proper capital accumulation in the form of savings, investment would be great and sustainable. The multiplier effect is on the well-being of the people through increased capital and output. The study recommended among others that; the government through the Central Bank of Nigeria (CBN) should ensure the reduction of reserve requirements of commercial banks in order to make available adequate funds in form of loans and advances for investment which will boost economic growth. Government should always maintain a good political atmosphere that is devoid of political upheavals because insecurity in the country has contributed immensely to the discouragement of the people from the cultivation of banking habit. More so, foreign direct investment will be discouraged in an environment ravaged with rancor. Banks should be encouraged to establish branches in the rural areas to discourage the rural dwellers from saving in their local saving boxes. This will bridge the gap between savings and investment. The government of Nigeria has a role to play by making policies that would encourage the spread of banks. This would be done by upgrading the standard of the Nigerian banking sector. Labour force has been revealed to be a positive growth stimulant in the study. Thus, government and the private sector should ensure that there is realistic and practical curriculum development in schools that will evolve a more productive labour force. Finally, the Governor of the apex bank (CBN) and monetary policy committee should liaise with the necessary operators to ensure that there are realistic interest and inflation rates that will stimulate economic activities and bring about the requisite economic growth in Nigeria.
Effect of Village Savings And Loan Associations on Small and Medium Enterprise (Sme) Growth in Rwanda: Survey of Kayonza District (Published)
The research purpose was to examine the effects of Village Savings and Loan Associations on the growth of Small and medium enterprises in Rwanda because despite the contribution of Rwandan Government supported the establishment of Village Group Savings Cooperatives as a way of providing financial accessibility to rural Rwandans who cannot afford big loans from the banking institutions in order to support their micro business, performance of SME’s in the rural areas is still low (RDB report 2014). The researcher achieved this research by use of three specific objectives namely; To analyze the effect of credit/ loans on growth of SME growth in Kayonza District; To examine the effect of training and advice on investment on SME Growth in Kayonza District; and to analyze the capital formation on SME growth in Kayonza district. The research is beneficial to the researcher, SME’s, government and JKUAT. The researcher reviewed both theoretical and empirical literature on the effect of Village Savings and credit cooperatives on SME’s performance. The researcher used descriptive method of study based on qualitative and quantitative approach in order to get better analysis of the study. The population size is 884 and sample of was taken. Both primary and secondary sources with their relevant tools like questionnaire and documentary analysis in order to come up with required data. In the findings it was established that Kayonza district has got various credit/ loan services, Training and Advice on Investment services and Capital formation (savings) services. Credit/ loan services includes; provision of required amount of loan to the clients, provision of loan to the clients within a short time, provision of loan without collaterals but members guarantee, provision of the loan to the clients at a low interest rate and provision of loans to the clients with flexible repayment schedule depending on one’s earnings. Training and Advice on Investment services which that include; provisions of investment briefings on terms and conditions of the loan before acquiring loan, provision of investment seminars and workshops to members, provision of tour to successful members business before loan is awarded to clients, VSLA also make follow up visit to their clients in order to provide business advice on monthly basis and they have created members working team who are guarantors and advisors. Capital formation (savings) services which ensures that that VSLA in Kayonza District make clients contribute monthly or weekly to the group savings, savings contribution is managed through rules and procedures, contributed fund is kept safe, clients to divide the saved funds at an agreed interval and clients has a right to refund once he withdraws from the saving group. These services positively influence the SME growth in Kayonza District in the sense that VSLA services has increased capital base increased of members business, increased profitability of the business, made business expand its branches, made members business acquire assets, made members business cash flow to improve and above all VSLA savings has made my progress from hand to mouth to planning for the future. This was justified by table 4.15 which showed the relationship between Village Savings and Loan Associations (VSLA) and SME growth in Kayonza District whereby the respondents N is 366 and the significant level is 0.01, the results indicate that independent variable has positive high correlation to dependent variable equal to .673** and the p-value is .000 which is less than 0.01. When p-value is less than significant level, therefore researchers conclude that variables are correlated and null hypothesis is rejected and remains with alternative hypothesis. This means that there is a significant relationship between Village Savings and Loan Associations (VSLA) and SME growth in Kayonza District. We can therefore conclude Village Savings and Loan Associations (VSLA) contribute to positive SME growth in Kayonza District.
The implication of savings and investment on economic growth is mixed and controversial both theoretically and empirically. There is large empirical literature which examines the relationship between savings and economic growth in Nigeria. There is also a considerable literature which looks at the relationship between economic growth and investment. However, little attention has been given to examining the implications of savings and investment on economic growth in Nigeria. The aim of this paper is to evaluate the implications of savings and investment on economic growth in Nigeria using ordinary least square regression. Results for ADF and PP unit root tests show that all variables under consideration are I(1). The study also revealed that there is long run relationship between savings, investment and economic growth in Nigeria. The result of the regression indicates that change in gross domestic savings movements has negative and significant effect on the change in economic growth in Nigeria and that the change in gross domestic investment has positive and significant effect on the change in the Nigerian economic growth. We therefore recommend that government should set a sound and fertile environment in order to foster domestic saving that will help to increase the level of economic growth in Nigeria
There is large empirical literature which examines the implications of savings and investment on economic growth in Nigeria. However, little attention has been given to examining the implications of savings and investment on economic growth in Nigeria. The aim of this paper is to evaluate the implications of savings and investment on economic growth in Nigeria using ordinary least square regression. Results for ADF and PP unit root tests show that all variables under consideration are I(1). The study also revealed that there is long run relationship between savings, investment and economic growth in Nigeria. The result of the regression indicates that change in gross domestic savings movements has negative and significant effect on the change in economic growth in Nigeria and that the change in gross domestic investment has positive and significant effect on the change in the Nigerian economic growth. We therefore recommend that government should set a sound and fertile environment in order to foster domestic saving that will help to increase the level of economic growth in Nigeria.
Financial inclusion as the provision of a broad range of high quality financial products such as savings, credit, insurance, payments and pensions, which are relevant, appropriate and affordable for the entire adult population especially the low income segments of the economy. This study critically examines the sustainability of financial inclusion to rural dwellers in Nigeria using descriptive study and content analysis. The study observed that the sustainability of financial inclusion to rural dwellers in Nigeria remains the mainstream for economic growth in any country. The implication of this study is that economy cannot grow fast without proper implementation of financial inclusion to rural areas in Nigeria. The study recommended that the promotion of collaboration between Deposit Money Banks (DMBs), Microfinance Banks (MFBs) and Communication services providers for enhanced intermediation of financial services should be encouraged; there is need to educate rural dwellers on the importance of banking as it would facilitate the success of CBN financial inclusion policy and that since some of the rural dwellers preferred to keep money under their pillows at home, there should be proper enlightenment to change their orientation on financial inclusion in Nigeria.
Effect Of Project Model Change On Project Performance In Rwanda: A Case of World Vision’s Village Savings Loan Associations Project Model in Nyamata Area Development Programme (Published)
This research will focus on the impact of project model change on project performance: a case of Village savings loans and associations in Nyamata Area development programme of World Vision Rwanda. This model of project called VSLAs has been initiated by Care International and World Vision Rwanda (WVR) is applying the model with the purpose of creating self-reliance and auto financing capacities among poor families from Nyamata Area Development programme. VSLAs project members have been able to mobilize their own savings and run income generating activities to satisfy their basic needs without relying on external support and then enjoy the empowerment and sustainability of VSLAs project interventions.The overall purpose is to find out if VSLAs project model is contributing to high project performance in the community of Nyamata Area Development Programme. The objectives of the study are to assess the economic status of the beneficiaries involved in VSLA , to examine family dynamics/social impact for or members of the VSLA, to examine how VSLA has impacted the environment and to analyse how VSLA has alleviated dependency in Nyamata ADP. The target population is 1250 members of the 50 VSLAs groups in Nyamata Area Development Programme. The proposed research design is correlation research whichgives an estimate as to the degree of association between the variables. A simple random sampling technique will be used to select members of VSLAs to be interviewed on how they have been positively affected by being VSLAs members. A sample size will be 120 members of VSLA groups determined using AllainBuchardformular. Both primary and secondary data will be used in this research study. The primary data will be collected directly from the respondents by use of questionnaires, interviews and observation. Secondary data on the other hand will be collected by reviewing Nyamata programme reports, and project design documents about VSLAs formation and how it improves project performance in the targeted area.Concerning the research instruments, the researcher will use closed-ended and open-ended questionnaires directed to members of VLSAs.Descriptive analysis will be used to summarize the characteristics of the respondents, the descriptive statistics will involved the use of mean, frequency, percentages and standard deviation on how VSLAs members have been impacted in creating IGAs, green environment, paying school fees , making decision in the family, acquiring new assets and paying health insurance. The results from this research will be presented in form of tables and bar graphs. The researcher hopes that this study will help World Vision Organization to replicate this project model to all other remaining 28 Area Development programme in Rwanda