Abstract

MICROSAVINGS: A SUBSTITUTE OR A COMPLIMENT TO MICROCREDIT IN THE FIGHT AGAINST CHRONIC POVERTY IN NIGERIA

Shuaibu Shehu Kura, Kuperan K. Viswanathan, Suhaimi Ishak

Volume: 7 Issue: 3 2017

Abstract:

Microsavings practices are as old as human history: informal savings opportunities such as ‘Susu’ and rotating savings and credit associations (ROSCAS) have been in existence for time immemorial. Hence, savings pre-dates loans as even before the advent of the modern day medium of exchange people made provision for the ‘rainy days’ which today, helps in no quantifiable measure in addressing the problem of financial exclusion faced by economically active poor especially in underdeveloped and developing nations such as Nigeria. This paper therefore, employed the review of relevant literature to appraise the linkage between microsavings and microcredit as poverty fighting tools. The paper concludes that the two concepts complement each other and combining them will produce better effect on poverty reduction.

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