FINANCIAL LITRACY AND GAMBLING BEHAVIOUR IN NIGERIA
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Date
2020
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Department of Accounting, Faculty of Management Sciences , University of Ilorin, Ilorin. Nigeria.
Abstract
The study investigates the influence of financial literacy on gambling behaviour among the Nigerian populace. Easy access to gambling outlets and an increase in the number of online gambling sites have caused gambling among the Nigerian population to rise significantly. We assume that it is less likely that financially literate individuals who use their knowledge to make sound financial and investment decisions will gamble. The study adopts the survey research design and employed a sample of 1448 respondents whose responses were obtained through questionnaire. The finding from the Probit regression model shows that the relationship between literacy and financial gambling frequency is significantly negative. We, therefore, recommend the need to promote financial literacy within the community, both at the school level and for adults. This will help gamblers to understand the financial risks they are exposed to and the options available to them. Financial institutions should establish appropriate processes for the disclosure of gambling problems and strategies to detect potentially risky transactions. The behavioural finance theorists identified the role of banks regarding how customers use their money such that banks may compensate for bias in decision- making, which is fundamental to problem gambling.
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Keywords
Financial literacy, Gambling, Gambling behaviour, Nigeria, Problem gambling