Abstract:
This paper examines and assesses the impact of non-interest financial services on household livelihood as indicated by the improvement in the households’ income and savings. A total of 750 client households were randomly selected from the seven states in the Northwest region of Nigeria. Intuitively, the study considered two dimensions through which the impact could be felt; namely; change in households’ income and savings. The paper employs logistic regression model in its analyses. The result of the empirical estimations shows that the household’s change in income model is significantly influenced by household’s size, gender of the household head, current facility amount, number of repayment installments, the type of account maintain with the non interest financial service providers and membership in a cooperative society. In the household’s savings model, the study found that religion, household size, income, operating a mudarabah savings account, type of the non interest facility enjoy and membership in a cooperative society increases household’s savings habit, and therefore, improve livelihood. Lastly, the study posits that measures aimed at improving access to non-interest financial services, especially for women, is capable of enhancing livelihood in the study area.
Description:
The overriding recognition of the complex make up of livelihood has resulted in many new modalities and more comprehensive programmes that address not only the replacement of physical assets, but the restoration of crucial social networks, provision of financial services, and development of markets (Kofarmata & Danlami, 2021). The first step for building self-sufficiency and a sustainable livelihood is re-establishing the necessary assets for income generation. Without an income, individuals and households are obliged to depend on family, friends and other available avenues of assistance to meet their most basic needs.
