Household Financial Access and Risk Sharing in Nigeria
IMF Working Papers, July 22, 2015
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Bibliographic details
- Authors: Stacy Carlson, Era Dabla-Norris, Mika Saito, Yu Shi
- Published: July 22, 2015
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781513506692.001
Overview
- Title: Household Financial Access and Risk Sharing in Nigeria
- Authors: Stacy Carlson, Era Dabla-Norris, Mika Saito, Yu Shi
- Publication date: July 22, 2015
- Series: IMF Working Papers, Working Paper No. 2015/169
- Pages: 28
- DOI: https://doi.org/10.5089/9781513506692.001
Research question and approach
- Examines the role of household financial access in determining the extent of risk sharing in Nigeria.
- Uses household-level panel data.
- Estimates changes in the response of consumption to shocks for three household groups:
- Households with formal access to finance
- Households with informal access to finance
- Households without financial access
- Analysis performed for Nigeria as a whole and for different regions.
Key findings
- Households with financial access who experience an unexpected negative income shock see consumption fall by 15 percentage points less than those without access.
- The mitigating effect on consumption is mainly driven by:
- Households with informal financial access
- Household savings rather than borrowing
- Regional variation in risk sharing tends to be significant.
Policy implications
- Financial inclusion efforts going forward should have a more regional focus, reflecting significant regional variation in risk sharing.
Subject classifications and keywords
- Subject: Banking, Consumption, Financial inclusion, Financial markets, Household consumption, Income, Income shocks, National accounts
- Keywords: Africa, bank, Consumption, consumption pattern, enhancement schemes program, Financial access, Financial inclusion, financial institution, Household consumption, Household Panel Data, Income, Income shocks, legacy community bank, micro-household business, Nigeria, poverty rate, Risk-Sharing, Sub-Saharan Africa, WP
IMF Working Paper No. 2015/169 (July 22, 2015) — Stacy Carlson, Era Dabla-Norris, Mika Saito, Yu Shi. DOI: https://doi.org/10.5089/9781513506692.001
Content in this bundle
- 1. Nigeria: Poverty Headcount, 2012/13