The effect of remittance inflow on savings in Nigeria: The role of financial inclusion

Figures & data

Table 1. Summary statistics and pairwise correlation among study variables

Variable	Savings	Account	Female	Age	Levels of education	Received remittance	Received wage
Number of observations	3,000	3,000	3,000	3,000	3,000	3,000	3,000
Mean	0.68	0.88	1.43	32.19	0.81	0.31	0.17
Standard deviation	0.47	0.64	0.49	13.27	0.48	0.46	0.38
Minimum	0	0	1	15	0	0	0
Maximum	1	1	2	99	2	1	1
Correlation matrix
Savings	1.000
Bank account	0.291*	1.000
Female	−0.083*	−0.180*	1.000
Age	0.030	0.061*	−0.052	1.00
Educational level	0.144*	0.382*	−0.124*	−0.197*	1.00
Received remittance	0.127*	0.239*	−0.009	0.022	0.117*	1.000
Received Wage	0.116*	0.217*	−0.109*	−0.036*	0.155*	0.254*	1.000

Source: FINTEC-WORLDBANK DATA (2014–2021), ***, **, and * represent the 1%, 5%, and 10% significance levels, respectively.

Table 2. Saving behaviour of individuals in Nigeria

Saved	Frequency	Percent
Yes	2,039	67.97
No	961	32.03
Total	3,000	1.00

Notes: Source: FINTEC-WORLDBANK DATA (2014–2021)

Table 3. Nexus of remittances and saving behaviour in Nigeria

	Received Remittance
Saved	No	Yes		Total
No	745	216		961
Yes	1,324	715		2,039
Total	2,069	931		3,000
Chi-square Test	Pearson chi2(1) = 48.37		Pr. = 0.000

Notes: Source: FINTEC-WORLDBANK DATA (2014–2021)

Table 4. Effect of remittance on the saving behaviour of Nigerians

Model	Model 1		Model 2
Savings	Coefficients	Odds ratio	Coefficients	Odd ratio
Mobile/FI account	2.846*** (0.35)	2.78*** (0.26)	1.406*** (0.426)	1.652*** (0.253)
Both accounts	4.560*** (0.74)	5.538*** (1.22)	3.12*** (0.725)	3.296*** (0.845)
Received remittance	1.443*** (0.33)	1.68*** (1.180)	n/a	n/a
Account*Remittance	n/a	n/a	1.445*** (0.327)	1.68*** (0.180)
Female	−0.356 (0.23)	0.88 (0.074)	−0.357 (0.235)	0.875 (0.074)
Age	0.002 (0.01)	1.00 (0.003)	0.0017 (0.0089)	1.00 (0.003)
Secondary education	0.122 (0.30)	1.05 (0.11)	0.123 (0.299)	1.05 (0.11)
Tertiary education	1.618* (0.78)	1.89** (0.57)	1.619** (0.784)	1.894** (0.57)
Received wage	0.975** (0.37)	1.449*** (0.195)	0.976*** (0.368)	1.449*** (0.196)
2017	−0.96*** (0.324)	0.72*** (0.081)	−0.97*** (0.324)	0.72*** (0.081)
2021	−2.19*** (0.384)	0.46*** (0.052)	−2.20*** (0.384)	0.46*** (0.052)
_constant	0.985* (0.48)	1.378** (0.233)	0.986* (0.482)	1.37** (0.233)
Likelihood statistics
No. of observations	3,000	3,000	3,000	3,000
Wald chi2	82.12***	n/a	82.72***	n/a
Insig2u	2.86 (0.25)	n/a	2.87(0.25)	n/a
Pseudo R2	n/a	0.0907	n/a	0.0907
LR test	3.18***	341.27***	3.18***	341.27***
Sigma_u	4.194(0.53)	n/a	4.202(0.53)	n/a

Notes 1: STATA Output using FINTEC-WORLD BANK DATA (2014–2021).

Notes 2: Standard errors are in parentheses; ***, **, and * represent 1%, 5%, and 10% significance levels, respectively.