Financial and nonfinancial savings in the economy of Nigeria

A number of financial and non-financial variables determine savings. In this study, political stability, per capita income, literacy rate, interest rate spread and dependency burden, were used to determine savings in Nigeria. It is necessary for more bank branches to be established in order to encourage savings in formal financial institutions. This means that as the dependency burden increases, the capacity for people to save is significantly reduced. Thus, there is a need to reduce household size through birth control measures. If this is done, then savings may likely increase.