Enhancing long-term savings culture in Nigeria through the National Savings Certificate

Abstract

The paper considers the operations of a National Savings Certificate as a panacea to the dearth of long-term savings for long-term investments, to justify the reforms and achieve accelerated economic growth. The paper is divided into six sections. Section 1 considers the theoretical framework, while trend analysis of savings in Nigeria will be the focus of Section II. In order to appropriately focus modalities for the operation of the proposed National Savings Certificate and appraise its effectiveness, the features of the instrument will be x-rayed in Section III, using the lessons of experience of India and the United Kingdom. The challenges that will need to be tackled in addressing the problem of longterm investment will be highlighted in Section IV. The Policy Recommendations for operating the Nigerian scheme will be analysed in Section V, while the Conclusions in Section VI will draw largely from the analyses in Sections II and IV.