DETERMINANTS OF PARTICIPATION IN ROTATING SAVINGS AND CREDIT ASSOCIATIONS (ROSCAs) IN OGUN STATE, NIGERIA

Abstract

Due to favorable disposition of residents to participation in Rotating Savings and Credit Associations (ROSCAs) in the Ogun State, Nigeria many individuals are nursing the ambition to establish one. This study provides empirical link between the socio-economic characteristics of residents within the division with a view to helping prospective foreman to understand factors that predispose residents to participation for decision-making. Data were obtained from 400 respondents and 25 randomly selected residents and foremen respectively within the division. Structured questionnaire and semi-structured interview were the instrument for data collection. The mixed-method collected data were analyzed using descriptive statistics, logit regression model and content analysis as applicable. Irrespective of the respondents’ ROSCA participation status, a typical respondent had about two members of his/her household working. Education, marital status, sex and annual income of the respondents were significant (p<0.05) predictors of participation in the ROSCAs. Based on the study findings, it is recommended that the prospective foreman targets residents that are married, with relatively higher income level and the less-educated to increase probability of participation in the association.