PRIVATE SECTOR DEPOSITS AND ECONOMIC GROWTH IN NIGERIA.
Abstract
Given the perceived connection between bank deposits and bank lending, this study investigated the effects of private sector deposits on the growth of the Nigerian economy for the period 1994 to 2023. Real GDP was adopted as a proxy for economic growth while private sector deposit was disaggregated into demand, time, savings and foreign currency deposits. Data for the study were sourced from Central Bank of Nigeria (CBN) statistical bulletin for 2023. Following preliminary analysis that covered descriptive analysis and ADF unit root test, the study adopted the Johansen cointegration analytical technique, granger causality test and ECM estimation for further analysis. The validity and reliability of results were checked using multicollinearity, serial correlation and heteroscedasticity tests. Basically, the study revealed that there is a long run relationship between private sector deposits and economic growth in Nigeria. Also, results showed that private sector’s demand, time and foreign currency deposits have positive insignificant effects on real GDP which the sector’s savings deposits have negative but also insignificant influence on real gross domestic product. On this note, the study concluded that the effect of private sector deposits on economic growth in Nigeria is insignificant. This led to the suggestion that there is need for banks to offer competitive lending rates that will be attractive to the public so as to be able to attract more deposits for onward lending to the deficit unit of the economy. Also, the regulatory authorities on their part should scale down lending rate by bringing down monetary policy rate. This will help in pushing more funds from the public into the banking system.
This article is available as a PDF download
Published in UNIPORT JOURNAL OF BUSINESS, ACCOUNTING & FINANCE MANAGEMENT
ISSN: 1596-9911
This article appears in our peer-reviewed academic journal
View JournalRelated Articles
Explore similar research in our collection
ARTIFICIAL INTELLIGENCE ADOPTION AND PUBLIC SERVICE DELIVERY: A CRITICAL EVALUATION OF GOVERNMENT IMPLEMENTATION, DATA GOVERNANCE, AND INSTITUTIONAL REALITIES IN NIGERIA
IHEMADU MICHAEL CHINAZAM N., PhD, ATASIE CHINYERE ODICHE, PhD
Oct 11, 2026
The strategic adoption of artificial intelligence (AI) and AI-adjacent algorithmic systems within pu...
View ArticleFINANCIAL LINK ANALYTICS AND INVESTMENT FRAUD PREVENTION IN NIGERIA: EVIDENCE FROM PROFESSIONAL FORENSIC EXPERTS
ALEXANDER TUNDE OGUNTUASE, FOLUKE RACHAEL ODUWOLE
Jul 21, 2026
This study examined the influence of Financial Link Analytics (FLA) on investment fraud prevention i...
View ArticleELECTRONIC TAX SYSTEM AND TAX COMPLIANCE, EVIDENCE FROM NIGERIA TAX JURISDICTION.
THOMAS AYOBAMI BABARINDE, OLADELE JOHN AKINYOMI, JOSHUA ODUTOLA OMOKEHINDE, TAOFIK AKINWUMI TALEAT
Jul 17, 2026
The study explores the impact of e-tax on tax submission conduct among taxpayers in Nigeria. To rea...
View Article