ABSTRACT

This study examined the determinants of savings among members of selected Agro-based cooperative societies in Ini Local Government Area of Akwa Ibom State, Nigeria. The objectives of the study were: to relate socioeconomic characteristics of the cooperator to savings; determine the amount saved and the extent of usage by the cooperators; identify the motives for savings; determine the factors that influence savings as well as the factors that militate against their savings. Primary data used in the study were obtained from one hundred and twenty (120) respondents using a randomized sampling technique. Obtained data were analyzed using descriptive statistics and econometric models. Regression analysis was used to estimate the factors that influence savings while principal component analysis was used to identify the factors that militate against savings by the cooperators. The results of the socioeconomic characteristics showed that majority (74.17%) of the cooperators were active with a mean age of 44 years, 5 months. Majority (60.83%) were male; (71.67%) of the male were married while (53.33%) had between 1-5 persons in their household with an average household size of six (6) persons. Majority (80%) of the cooperators were literate with an average of eleven (11) years in formal schooling while (35.83%) had between 11-15 years of farming experience with a mean farming experience of fourteen (14) years;  ( 23.33% ) were new in the cooperatives and had stayed between 1-3 years with a mean year of membership of eight (8) years. The result also showed that on the average, the respondents saved N26583.5 per annum with a minimum contribution of N1000 and a maximum contribution of N120,000. Majority (76.67%) of the cooperators earn below N100,000 monthly with an average monthly income of N82702 while 60% of them spent below N40,000 per month. The result of the regression analysis showed that marital status, household size and monthly expenditure negatively influenced savings while age, years of education, years of cooperative membership and household income positively influenced the savings of the cooperators in the study area. The result of the marginal effect of savings showed that if income increases by N1.00, savings will increase by 0.3761 kobo. The study recommends educational and training programs that will encourage members to cultivate the habit of savings with their cooperative societies.