Households’ investment structure in Southwestern, Nigeria

Abstract

Household investment is a significant part of total private investment that has contributed enormously to economic growth in Nigeria. However, little or no attempt has been made to examine its structure. This study, therefore, examines the structure (volume and pattern) of household (banked and unbanked) investment in physical, human capital and financial asset in southwestern Nigeria in 2021. Analysis of data generated through a questionnaire from a multistage sampling procedure of 909 households, explored by latent class Markov and logistic regression, showed that banked households invested more in physical and human capital assets than unbanked households. The pattern of a financial investment as revealed in the acquisition pattern of financial assets showed that saving accounts remain the dominant financial product owned by the highest number of banked households. Thus for inclusive growth to be achieved, more policy efforts of government, banks and regulatory authorities are needed at ensuring that formal financial services are available and affordable to all qualified adults.