Evaluation of women’s access to building credits from banks in Nigeria
-
DOIhttp://dx.doi.org/10.21511/bbs.16(4).2021.05
-
Article InfoVolume 16 2021 , Issue #4, pp. 45-60
- Cited by
- 583 Views
-
229 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
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.
Acknowledgment
The article processing charge (APC) for this paper was supported by Covenant University Centre for Research, Innovation and Discovery, Nigeria.
- Keywords
-
JEL Classification (Paper profile tab)D63, G21, L74
-
References74
-
Tables5
-
Figures4
-
- Figure 1. Average monthly income of men and women
- Figure 2. Some financial indices on the financial inclusion among women in Nigeria
- Figure 3. Criteria to access building credits across different banks
- Figure 4. Benefits accrued when women can access building credits from banks
-
- Table 1. Summary of background information
- Table 2. ANOVA test on the criteria for access to building credits across different banks
- Table 3. Factors militating against women trying to access building credits from banks
- Table 4. CAT-REG test on the factors militating against women trying to access building credits from banks
- Table 5. Measures that will enhance women’s access to building credits
-
- Adeyele, J. S. (2018). Financial institutions’ criteria and mechanisms in financing small and medium enterprises in Plateau state, Nigeria. Economic Horizons, 20(2), 109-124.
- Adusei, M., & Adeleye, N. (2020). Credit information sharing and non-performing loans: The moderating role of creditor rights protection. International Journal of Finance and Economics.
- Afolabi, A. O., Akinbo, F. T., & Akinola, A. (2019). Vertical Architecture Construction: Prospects and Barriers in solving Lagos’ Housing Deficit. Journal of Physics: Conference Series, 1378(4), 042032, 1-7.
- Afolabi, A., Ojelabi, R., Tunji-Olayeni, P. F., Omuh, I., & Afolabi, A. (2018). Quantitative analysis of socio-economic drivers of housing and urban development projects in megacities. International Journal of Civil Engineering and Technology, 9(6), 1096-1106.
- Agarwal, B., Anthwal, P., & Mahesh, M. (2021). How Many and Which Women Own Land in India? Inter-gender and Intra-gender Gaps. The Journal of Development Studies.
- Agier, I., & Szafarz, A. (2012). Subjectivity in credit allocation to micro-entrepreneurs: Evidence from Brazil. Small Business Economics, 41(1), 263-75.
- Akinmoladun, O. I., & Oluwoye, J. (2007). An Assessment of Why the Problems of Housing Shortage Persists in Developing Countries. A Case study of Lagos Metropolis, Nigeria. Pakistan Journal of Social Sciences, 4(4), 589-598.
- Alesina, A. F., Lotti, F., & Mistrulli, P. E. (2013). Do women pay more for credit? Evidence from Italy. Journal of the European Economic Association, 11(S1), 45-66.
- Alliance for Financial Inclusion (AFI). (2017). Bridging the gender gap: Promoting Women’s financial inclusion. Tools and guidance from the AFI Network. AFI, Kuala Lumpur, Malaysia.
- Anundsen, A. K., & Jansen, E. S. (2013). Self-reinforcing effects between housing prices and credit. Journal of Housing Economics, 22(3), 192-212.
- Anyanwu, J. C. (1992). Women’s access to credit facilities from commercial banks in Nigeria: Challenges for the 1990s. Savings and Development, 16(4), 421-440.
- Armendariz, B., & Morduch, J. (2010). The Economics of Microfinance (2nd ed.). Cambridge, MA: The MIT Press.
- Armitage, S., Hou, W., Liu, X., & Wang, C. (2020). Law, Endowment, and Inequality in Access to Finance. Finance Research Letters, 39, 101540.
- Aterido, R., Beck, T., & Iacovone, L. (2013). Access to finance in Sub-Saharan Africa: Is there a gender gap? World Development, 47, 102-120.
- Bardasi, E., Blackden, C. M., & Guzman, J. C. (2007). Gender, Entrepreneurship, and Competitiveness in Africa. In The Africa Competitiveness Report 2007.
- Batana, Y. M. (2013). Multidimensional measurement of poverty among women in Sub-Saharan Africa. Social Indicators Research, 112(2), 337-362.
- Berger, A. N., & Udell, G. F. (2002). The economics of small business finance: The roles of private equity and debt markets in the financial growth cycle. Journal of Banking and Finance, 22(6-7), 613-673.
- Berlinghieri, L. (2010). Essays on House Price Fluctuations in the U.S. (Ph.D. Thesis). University of Washington, Seattle, USA.
- Beyer, K. M. M., Laud, P. W., Zhou, Y., & Nattinger, A. B. (2019). Housing Discrimination and Racial Cancer Disparities among the 100 Largest U.S. Metropolitan Areas. Cancer, 125(21), 3818-3827.
- Brissimis, S. N., & Vlassopoulos, T. (2009). The interaction between mortgage financing and housing prices in Greece. Journal of Real Estate Economics, 39, 146-164.
- Carrillo-Hidalgo, I., & Pulido-Fernández, J. I. (2018). Measuring the inclusiveness of international financing to tourism in Latin America and the Caribbean. Investment Management and Financial Innovations, 15(3), 15-34.
- Centre for Affordable Housing Finance Africa (CAHFA). (2018). Housing Finance in Nigeria.
- Chaudhuri, K., Sasidharan, S., & Raj, R. S. N. (2020). Gender, small firm ownership, and credit access: Some insights from India. Small Business Economics, 54, 1165-1181.
- Constantinescu, M., & Lastauskas, P. (2018). The knotty interplay between credit and housing. The Quarterly Review of Economics and Finance, 70, 241-266.
- Corsi, M., & De Angelis, M. (2017). Gender Discrimination in Microfinance? Some Evidence from Uganda. The Journal of Development Studies, 53(5), 723-740.
- Courchane, M. (2008). Dawning of a new age: examination for discrimination in lending. Banking and Financial Services Policy Report, 27, 1-9.
- Daley-Harris, S. (2009). State of the microcredit summit campaign report. Technical report. Microcredit Summit Campaign, Washington, DC.
- De Andres, P., Gimeno, R., & de Cabo, R. M. (2020). The gender gap in bank credit access. Journal of Corporate Finance.
- Deere, C. D., Oduro, A. D., Swaminathan, H., & Doss, C. (2013). Property rights and the gender distribution of wealth in Ecuador, Ghana, and India. Journal of Economic Inequality, 11(2), 249-265.
- Demirgüç-Kunt, A., Klapper, L., Singer, D., Ansar, S., & Hess, J. (2018). Global Findex Database 2017: Measuring Financial Inclusion and the Fintech Revolution. Washington: World Bank Group.
- Enhancing Financial Innovation and Access (EFInA). (2019). Assessing the Impact of Female Financial Services Agent in Driving Financial Inclusion. EFInA Access to Financial Services in Nigeria 2018 survey.
- Eze, C. C. (2006). Determinants of Women Access to Credit from selected Commercial Banks in Imo State, Nigeria. International Journal of Natural and Applied Science, 2(2), 136-141.
- Eze, C. C., Ibekwe, U. C., & Korie, O. C. (2009). Women’s Accessibility to credit from selected commercial banks for poverty reduction in South-East Nigeria (pp. 674-689). 17th International Farm Management Congress. Bloomington/Normal, Illinois, USA.
- Fitzpatrick, T., & McQuinn, K. (2007). House prices and mortgage credit: empirical evidence for Ireland. The Manchester School, 75(1), 82-103.
- Fletschner, D., & Kenney, L. (2011). Rural women’s access to financial services: credit, savings, and insurance (ESA Working Paper No. 11-07). The Food and Agriculture Organization of the United Nations.
- Gerlach, S., & Peng, W. (2005). Bank lending and property prices in Hong Kong. Journal of Banking and Finance, 29(2), 461-481.
- Ghosh, S., & Vinod, D. (2017). What constrains financial inclusion for women? Evidence from Indian micro data. World Development, 92, 60-81.
- Guobadia, O. (2021). Banks in Nigeria: Gender diversity statistics.
- Hallward-Driemeier, M. (2013) Enterprising Women: Expanding Economic Opportunities in Africa. Africa Development Forum. Washington, DC: Agence Française de Développement and the World Bank.
- Haron, H., Said, S. B., Jayaraman, K., & Ismail, I. (2013). Factors influencing Small Medium Enterprises (SMEs) in obtaining loan. International Journal of Business and Social Science, 4(15), 182-195.
- Hillier, A. (2003). Redlining and the home owners’ loan corporation. Journal of Urban History, 29(4), 394-420.
- Ibem, E. O., Anosike, M. N., & Azuh, D. E. (2011). Challenges in public housing provision in the post-independence era in Nigeria. International Journal of Human Sciences, 8(2), 1-23.
- Izugbara, C. O. (2004). Gendered Micro-Lending Schemes and Sustainable Women’s Empowerment in Nigeria. Community Development Journal, 39(1), 72-84.
- Jack, J. T. C. B., & Roland, V. T. (2016). Access to microcredit and economic empowerment: perceptions amongst market women in Yenagoa, Bayelsa State, Nigeria. International Journal of Development and Management Review, 11(1), 150-161.
- Jiboye, A. D. (2011). Homelessness in Lagos, Nigeria. Journal of Sustainable Development in Africa, 13(2), 138-154.
- Kagotho, N. (2015). Protecting assets for the most vulnerable: The potential for asset-based intervention. Global Social Welfare, 2, 43-51.
- Karakara, A. A., & Osabuohien, E. S. (2019). Households’ ICT access and bank patronage in West Africa: Empirical insights from Burkina Faso and Ghana. Technology in Society, 56, 116-125.
- Klapper, L. F., & Parker, S. (2010). Gender and the Business Environment for New Firm creation. World Bank Research Observer, 26(2), 237-257.
- Larossi, G., Mousley, P., & Radwan, I. (2011). An Assessment of the Investment Climate in Nigeria. Directions in Development. Washington, D.C.: World Bank.
- Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(1), 5-44.
- Lusardi, A., Mitchell, O. S., & Curto, V. (2010). Financial literacy among the young. Journal of Consumer Affairs, 44(2), 358-380.
- Margolis, A., & Buckingham, E. (2013). Agriculture and Nutrition Global Learning and Evidence Exchange (AgN-GLEE). Joint USAID and Spring Conference, Guatemala City.
- Marlow, S., & Patton, D. (2005). All credit to men? Entrepreneurship, finance, and gender. Entrepreneurship Theory and Practice, 29(6), 717-735.
- Matoba, N., Suprenant, S., Rankin, K., Yu, H., & Collins, J. W. (2019). Mortgage discrimination and preterm birth among African American women: An exploratory study. Health and Place, 59, 102193.
- Mendez, D. D., Hogan, V. K., & Culhane, J. F. (2011). Institutional racism and pregnancy health: using Home Mortgage Disclosure act data to develop an index for Mortgage discrimination at the community level. Public Health Report, 126(3), 102-114.
- Meyll, T., & Pauls, T. (2019). The gender gap in over-indebtedness. Finance Research Letters, 31.
- Morsy, H. (2020). Access to finance – Mind the gender gap. The Quarterly Review of Economics and Finance, 78, 12-21.
- Muravyev, A., Talavera, O., & Schafer, D. (2009). Entrepreneurs’ gender and financial constraints: evidence from international data. Journal of Comparative Economics, 37(2), 270-286.
- National Bureau of Statistics. (2018). Statistical Report on Women and Men in Nigeria – 2017. Abuja, Nigeria: National Bureau of Statistics.
- National Population Commission (NPC) and ICF International. (2014). Nigeria Demographic and Health Survey 2013. Abuja, Nigeria, and Rockville, Maryland, USA: NPC and ICF International.
- Nkwodimmah, P., Ikpefan, O. A., Osuma, G. O., Ndigwe, C., Okunade, T., & Ogabi, M. A. (2019). Loan management and performance of selected microfinance banks in Nigeria. Proceedings of the 33rd International Business Information Management Association Conference, IBIMA 2019: Education Excellence and Innovation Management through Vision 2020 (pp. 9857-9866).
- Oladokun, Y. O. M., Adenegan, K. O., Salman, K. K., & Alawode, O. O. (2018). Level of asset ownership by women in rural North-East and South-East. Women’s Studies International Forum, 70, 68-78.
- Olotuah, A. (2010). Housing Development and Environmental Degeneration in Nigeria. The Built & Human Environment Review, 3, 42-48.
- Ongena, S., & Popov, A. (2016). Gender bias and credit access. Journal of Money, Credit and Banking, 48(8), 1691-1724.
- Presbitero, A. F., Rabellotti, R., & Piras, C. (2014). Barking up the Wrong Tree? Measuring Gender Gaps in Firm’s Access to Finance. The Journal of Development Studies, 50(10), 1430-1444.
- Rahman, M. A. U., & Ley, A. (2020). Micro-credit vs. Group savings – different pathways to promote affordable housing improvements in urban Bangladesh. Habitat International, 106, 1-9.
- Sanusi, L. S. (2012). Increasing women access to finance: Challenges and opportunities. Paper. Challenges and opportunities. Paper presented at the Second African Women’s Economic Summit held in Lagos, Nigeria.
- Scalera, D., & Zazzaro, A. (2001). Group reputation and persistent (or permanent) discrimination in credit markets. Journal of Multinational Financial Management, 11(4-5), 483-496.
- Storey, D. (2004). Racial and gender discrimination in the micro firms’ credit market? Evidence from Trinidad and Tobago. Small Business Economics, 23, 401-422.
- Swamy, V. (2014). Financial inclusion, gender dimension, and economic impact on poor households. World Development, 56, 1-15.
- Tunji-Olayeni, P. F., Emetere, M., & Afolabi, A. O. (2017). Multilayer Perceptron Network Model for Construction Material Procurement in fast Developing Cities. International Journal of Civil Engineering and Technology (IJCIET), 8(5), 1468-1475.
- United Nations Human Settlements Programme (UN-HABITAT). (2006). National Trends in Housing –Production Practices, Volume 4: Nigeria. Nairobi: United Nations Centre for Human Settlements.
- Wellalage, N., & Locke, S. (2017). Access to credit by SMEs in South Asia: do women entrepreneurs face discrimination. Research in International Business and Finance, 41, 336-346.
- World Bank. (2001). Engendering development through gender equality in rights, resources, and voice (World Bank policy research Report No. 21776). Washington, D.C.: World Bank.