Evaluation of women’s access to building credits from banks in Nigeria

Adedeji O Afolabi,Ifeoluwa R Akinlolu

doi:10.21511/bbs.16(4).2021.05

Abstract

Women are responsible for the fastest economic growth in the world through their commercial activities. Despite this notable act, women in developing countries are most times sidelined in accessing financial incentives from banks. The purpose of this study was to evaluate the criteria used by banks and the problems encountered by women in accessing building credits in Nigeria. The study used a cross-sectional survey research design that utilized an electronic questionnaire instrument. The data obtained were analyzed using frequencies, percentages, 100% stacked bars, mean score, ANOVA, and categorical regression (CAT-REG) tests. The result revealed that the primary criteria to access building credits across different banks in Nigeria were the source of income/level of income, credit status/review, and the value of the collateral. When women can access building credits from banks, it can lead to improved living conditions for women, improved work-life, and benefits for their children. However, the lack of collateral, lack of financial literacy, lack of formal employment, and lack of right to ownership of property are limiting factors in women lending from banks. Furthermore, gender discrimination, lack of financial literacy, and low educational background could influence women’s access to building credits from banks. To facilitate the provision of loans to women from banks, it is necessary to improve government policy, economic reforms and banking legislation for women’s access to loans. AcknowledgmentThe article processing charge (APC) for this paper was supported by Covenant University Centre for Research, Innovation and Discovery, Nigeria.

Highlights

Several studies have tried to show the correlation between credits and housing ownership
The purpose of this study was to evaluate the criteria used by banks and the problems encountered by women in accessing building credits in Nigeria
The study showed that over 80% of loan officers emphasized the need for women to show their source of income/level of income in the loan application forms for accessing building credits

Summary

INTRODUCTION

Several studies have tried to show the correlation between credits and housing ownership. Previous studies have pointed to issues concerning the growing population (Olotuah, 2010), rural-urban migration (Akinmoladun & Oluwoye, 2007), inadequate government policies (Ibem et al, 2011), high cost of land (UN-HABITAT, 2006), and inadequate financing of the housing sector (Ibem et al, 2011; Afolabi et al, 2017; Tunji-Olayeni et al, 2017) In these housing deficit challenges, several policies have been adopted to address homelessness’s threat, but all to no avail. The World Bank report by Larossi et al (2011) showed that having access to financial credits allows women to procure shelter for their families and helps reduce homelessness This is not the case as many women in Sub-Saharan Africa are restricted from owning assets such as houses and lands and tend to hold more non-income-producing assets (Kagotho, 2015; Oladokun et al, 2018). Propose solutions that will enhance women’s accessibility to building credits in Nigeria

LITERATURE REVIEW women form more than 70 percent of MFIs’ client

RESEARCH METHOD

AND DISCUSSION

Background information

Findings

CONCLUSION AND RECOMMENDATIONS