EFFECT OF FINANCIAL LITERACY ON INVESTMENT BEHAVIOUR OF CIVIL SERVANTS: A STUDY OF ENUGU STATE

Abstract

This study investigated the effect of financial literacy on the investment behaviour of civil servants in Enugu State, Nigeria. Using a descriptive survey design, data were obtained from 412 civil servants selected through a multistage sampling procedure and analysed using descriptive statistics and multiple regression. The findings showed that respondents possessed a moderate level of financial literacy, but their investment behaviour remained largely irregular and unstructured. Financial literacy significantly explained 52.0% of the variation in investment behaviour (R² = 0.520, p < 0.05), indicating its substantial role in shaping investment decisions. Financial knowledge, financial behaviour and financial attitude each exerted a significant positive effect on investment behaviour, although financial knowledge emerged as the strongest predictor. The findings suggest that access to financial services alone may not produce sound investment practices without adequate knowledge, disciplined financial behaviour and positive attitudes towards investment. The study concludes that financial literacy is a critical determinant of investment behaviour among civil servants in Enugu State. It recommends the integration of practical financial education into civil service training programmes and the expansion of access to credible, secure and user-friendly investment platforms.