ANALYSIS OF RURAL SAVINGS MOBILIZATION FOR POVERTY ALLEVIATION IN IJUMU LOCAL GOVERNMENT AREA OF KOGI STATE.

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ANALYSIS OF RURAL SAVINGS MOBILIZATION FOR POVERTY ALLEVIATION IN IJUMU LOCAL GOVERNMENT AREA OF KOGI STATE.

ABSTRACT

This study examined some important factors that determine savings behaviour and the magnitude of poverty in Ijumu Local Government Area of Kogi State. Primary data were generated using field interview and structured questionnaires were administered to one hundred and twenty respondents. The analytical tools employed were descriptive statistics, multiple regression, Correlation analysis and Foster-Greer-Thorbeeke poverty measures. A quantitative determination of the dependence of rural savings on some household socio-economic characteristics like current assets, gross income, farmers’ age, household size and years of experience of household heads was carried out using regression and correlation analyses. The level of savings per household heads per annum in different occupational categoriesfarming, farming/trading, farming/artisans and farming/civil servants were N14, 989.45, N48, 471.00, N35, 005.30 and N41, 830.92 respectively. Regression coefficients showed that gross income, age of household heads and years of experience made significant contributions of about 55% variations in the level of savings. The results of correlation analysis revealed that of the five socio-economic factors examined, four were statistically significant at 1% level of probability. These were gross income, age, household size and years of experience in farming while current asset was not statistically significant. This study measures the magnitude of poverty in the area to buttress the need to boost the savings capacity of rural household with the aim of alleviating poverty. The result indicates that 66% of the sampled households live below the poverty line of N1, 274.90 while the poverty gap index and severity of poverty index were 0.42 and 0.27 respectively. The study recommends that farmers should have other sources of income apart from farming because of its seasonality. Savings incentives can be further stimulated through the physical presence of savings institution in the study area.

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