LIST OF REASONS

In Nigeria, a growing body of research has begun to shed light on the multiple factors that contribute to the persistently low rate of capital formation , a challenge that has significant implications for the nation’s overall economic development. The discussion often begins with the recognition that the low level of national income and per capita income is at the heart of the issue. In Nigeria, many citizens struggle with inadequate earnings, and this insufficient level of disposable income has a direct impact on the ability to save and invest. When individuals do not have enough income to cover basic needs, they are left with little or nothing to set aside for investments that could enhance production and drive economic growth. As a result, the cycle of low income and low savings reinforces itself, creating a self-perpetuating trap where the lack of capital inhibits the establishment of more productive industries, which in turn means that national income remains stagnant. This viciou...