Analysis of the Role of Rural Savings Groups in Financing Agricultural Activities in Imo State, South East Nigeria

Rural savings groups, including traditional rotating savings and credit associations, have long served as informal financial intermediaries for smallholder farming households in South East Nigeria. In Imo State, where formal agricultural credit remains largely inaccessible for smallholders, savings groups provide critical capital for farm inputs, equipment, and seasonal operating costs. This study analysed the role of rural savings groups in financing agricultural activities in Imo State. Primary data were collected from 100 farming households across four local government areas through structured questionnaires and focus group discussions. Data captured savings group membership, contribution patterns, loan utilisation, and agricultural investment outcomes. Descriptive statistics and logistic regression were applied. Results revealed that savings group members were 2.4 times more likely to finance timely input purchases compared to non-members. Group loan recipients reported average crop revenue increases of 24 percent compared to pre-membership baseline periods. However, limited pool sizes constrained access to large capital investments such as irrigation equipment or processing machinery. The study recommends formalising linkage banking between rural savings groups and microfinance institutions to scale up capitalisation. Technical assistance to savings groups on financial record keeping and governance is also advocated. Keywords: savings groups, agricultural finance, Imo State, rotating credit, smallholder farmers.