Determinants of rural households’ savings potential in Ijumu Local Government Area, Kogi State.

Abstract

The study investigated the effect socio-economic characteristics of rural households on saving capacity in four villages of Ijumu Local Government Area of Kogi State. The primary data used for the investigation were generated through copies of a questionnaire administered to a hundred and twenty randomly selected household heads. Result showed that income was more equitably distributed than savings. Current asset, gross income, age of household heads and years of experience in farming had positive correlation with the value of savings while household size had poor correlation with savings. On the other hand, gross income, age, household size and years of experience in farming were significant at 1% level of probability, while current asset was not statistically significant. The major constraint to saving mobilization was limited income. It was recommended that farmers should be encouraged to expand their production capacity through credit.