A pro poor framework for enhancing micro-savings in Nigeria

Abstract

This paper attempts to examine the fundamental issues in saving and thereafter design a formal savings habit of the populace, especially the low-income group. The framework is designed to mobilise micro-savings, hitherto kept with thrift collectors and roll it over gradually till old age. The paper is divided into six sections. Following the introduction, section two expounds theoretical issues in savings and presents all relevant theories on savings. Section three describes the experience of other jurisdictions in encouraging and mobilising micro savings. The need for enhanced savings is analysed in section four, while a framework for enhancing micro-savings among the low-income group is proposed in section five. Section six concludes the paper.