ABSTRACT

This study examines the determinants ofnational savings in Nigeria between 1981-2018, which will enable us to proffer solution for the improvement ofsavings in the economy, since it is an important component ofthe economic development ofany country. The method ofanalysis used in testing the hypothesis is coefficient ofmultiple determination {R2}, T -test, F-statistics. Data for the study was obtained from the central bank of Nigeria statistical bulletin, the major findings was per capita income (GDPPC) has a positive impact on savings (TNS) in Nigeria. This implies that per capita income has a direct relationship with savings in Nigeria. The higher the average income, the higher the savings rate in Nigeria. Specifically a 1% increase in per capita income (GDPPC) is expected to increase total national savings (TNS) by about 63%. The effect is also statistically significant, similarly interest rate wasfound to have appositive effect on savings in Nigeria in the short run and total private consumption expenditure has a positive short run impact on saving in Nigeria. Inflation is seen to have a negative impact on savings in Nigeria in the short run in the period under review. On the other hand credit to the private sector is directly related to saving in the long run. The variable is also statistically significant in the period under review. Finally, the control variables interest rate and Inflation rate has a negative and statistically insignificant impact on savings growth in Nigeria. Based on the findings, some recommendations ofpolicy and suggestions have been made.