IMPACT OF NON INTEREST FINANCIAL SERVICES ON HOUSEHOLDS’ INCOME AND SAVINGS

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.