The role of institutional trust in the formalization of women’s savings and loans groups: Experiences from the Nigeria for Women Project

This paper presents evidence on the role of institutional trust in the formation and formalization of government-supported women’s savings groups, known as Women Affinity Groups (WAGs) and implemented through the Nigeria for Women Project (NFWP). While existing research has shown the vital role of peer trust in the operation and effectiveness of savings groups, less is known about how institutional trust affects the formalization and scale up of savings groups. This paper examines how underlying drivers of institutional trust and mistrust shape savings group formalization processes and outcomes. In-depth interviews and focus group discussions with participants, community members, and staff of the NFWP suggest that project implementers were able to overcome initial mistrust of the NFWP by leveraging community structures, demonstrating consistency, and providing promised services. Community mobilization through reputable social networks contributed to the facilitation of group formation, which in turn helped address challenges associated with a weak institutional environment and poor experiences with previous livelihood interventions. A demonstrated record of success also enabled building the credibility of the project.