CONSUMPTION AND SAVING PATTERN AMONG RURAL FARMING HOUSEHOLDS IN ABEOKUTA NORTH LOCAL GOVERNMENT AREA OF OGUN STATE

Akerele, E.O. and *Ambali, O. I. 

Department of Agricultural Economics and Farm Management

Olabisi Onabanjo University, Yewa Campus,Ogun State, Nigeria

E-mail: everlastingamtoyo@yahoo.co.in 

ABSTRACT

This study analyzed the consumption and saving pattern among rural farming households in Abeokuta North Local Government Area of Ogun State. One hundred and twenty (120) rural farming household heads were sampled in a two-stage sampling process. The data collected were analyzed using descriptive statistics and multiple regression analyses. The findings revealed that most household heads are in their active age, had formal education, married, farmers, earn little income but save very little. The household size, marital status, cooperative society, occupation and education are the significant determinants of savings among the rural farming households. The significant determinants of consumption among rural household heads include income, savings and education. The study revealed that the consumption of the household will increase by 38kobo if their income increases by 1N while the consumption of household will decrease by 18kobo if their savings increase by 1N, ceteris paribus. The policy option requires the household heads to diversify their economic activities in order to earn more income and increase their savings so as to cover their present and future consumption. Household education should be strengthened as education has positive effect on savings and consumption. Lastly, Rural farming households can use cooperative societies as a means of securing economic investment and income diversification.

Keywords: Income, savings, consumptions, occupation, farming households