ABSTRACT

The study investigated on the efleet of money deposit bank liquidity on economic performance of Nigeria . The major objectives ofthe study are to examine the effect of bank liquidity on real domestic product in Nigeria, to determine the effect ofbank liquidity on inflation rale in Nigeria and to determine the effect bank liquidity on unemployment rale in Nigeria. To achieve the objectives of the study, ex post facto design was adopted. The researcher adopted secondary data in getting the required inlbnnation. CBN statistical bulletin and Nigeria bureau of Statistics was used as sources ofdata. The study covered the period of26 years ranging firom 1990 to 2015. In testing the hypotheses, regression analysis was used was used. The findings revealed that bank liquidity has a significant effect on the percentage change ofreal gross domestic product in Nigeria. The findings further revealed that bank liquidity has a significant effect on inflation rate and unemployment rate in Nigeria. The researcher recommends that govermnent of Nigeria should motivate banks as a matter of policy to grant more loans and advances to the economy. The researcher also recommends that the regulatory authorities should cause the deposit money banks to follow strictly, the prudential guideline in their operations.