Consumption Dynamics in Bayelsa State, Nigeria: The Experience of Atissa and Epie Ethnic Nationality

Abstract

This study was conducted in Atissa and Epie ethnic nationality in the Yenagoa Local Government Area of Bayelsa State to explore determinants of consumption among rural dwellers. We used variables identified in the reviewed literature as it relates to the level of consumption in Atissa and Epie Clans. Primary data were collected through a well-structured  questionnaire that was administered to 5000 randomly selected  respondents from the two clans. The data were analyzed and grouped into
seven variables to test two hypotheses. The results showed that current income, expected future income, bank savings, investment in shares, pension fund returns and durable assets were significant determinants of consumption in the area of under study. Thus, we suggest that all tiers of government in Nigeria should create conducive environment for business to strive. In addition, the Bayelsa State government should carry out  enlightenment campaign in rural communities on the need to invest in their fund in shares, key into the new pension scheme as well as keep
their funds in banks for safety in other to maintain a steady pattern of consumption both now and in the future. Rural dweller in the State should also be discouraged from increasing their consumption arbitrarily so that they can channel these excess consumption funds into savings that will yield returns. To realize this, the State government should partner with the Central Bank Nigeria to persuade commercial banks in the country to raise their interest rate on savings as this will encourage rural dwellers to save more.

Keywords: Consumption, Rural dwellers, Ethnic nationality, Atissa, Epie, Bayelsa State, Nigeria.