In Nigeria, different types of groups exist, including women’s groups, and groups focused on agriculture, savings, credit, religious and social pursuits, and business associations, all of which are avenues through which to deliver interventions that aim to improve women’s economic and social empowerment (Desai et al., 2019). However, only limited evidence is available on the impact of informal savings groups in sub-Saharan Africa despite their high prevalence, especially in rural areas.
In this brief, based on a review of available evidence, we find that 1) Women’s aggregate informal savings group participation increased throughout Nigeria between 2010 and 2018, but there is evidence of large drop-out rates, possibly because of low within-group trust. 2) One potential way to reduce drop-out rates is to transform informal savings groups into formal savings groups. 3) Evidence from a randomized controlled trial and phone-based surveys during COVID-19 indicates that implementers in Nigeria can harness Village Savings and Loan Associations and group mentorship programs to improve women’s resilience and food security during and after large nationwide shocks, such as COVID-19.
Status: Completed Research