University Links: Home Page | Site Map
Covenant University Repository

Financial Decision and Poverty Nexus in Nigeria

George, T. O. and Okoye, Lawrence U. and Efobi, Uchenna and Modebe, Nwanneka J. (2017) Financial Decision and Poverty Nexus in Nigeria. Nigerian Journal of Management Technology & Development, 8 (2). pp. 1-10. ISSN 2006-1676

[img] PDF
Download (896kB)


The study examines the relationship between poverty and financial decision in Nigeria so as to ascertain if poverty has an impact on the quality of financial decisions taken by the poor and financially vulnerable individuals. The study utilised a unique methodology (truncated regression) and applied a survey data from the Afrobarometer dataset to investigate the quality of loan usage among the extreme poor in Nigeria. We allowed for the inclusion of other policy relevant variables that may likely inform the direction of new generation poverty alleviation policies like gender, education and age of the individuals. We find that the extremely poor group use more of the loans for other non-developmental issues like funeral and marriage celebrations than for productive and poverty alleviating ventures. However, the younger males engage more in this act than the females. Also, as the poor become more educated, they are able to use more of the loan for development-oriented investments like purchase of assets, building houses and even furthering their education. A major policy implication of this result is that loans should be directed towards younger individuals, and education should be a focal priority in selecting who to fund.

Item Type: Article
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HF Commerce > HF5601 Accounting
H Social Sciences > HM Sociology
Divisions: Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User: Mrs Patricia Nwokealisi
Date Deposited: 13 Jun 2018 14:25
Last Modified: 13 Jun 2018 14:25

Actions (login required)

View Item View Item