IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH (IJBFR )

E-ISSN 2695-1886
P-ISSN 2672-4979
VOL. 10 NO. 8 2024
DOI: 10.56201/ijbfr.v10.no8.2024.pg34.62

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Savings Deposit and Growth of Nigeria’s Real Gross Domestic Product

Odimgbe Jude Chijekwu (PhD), Sampson Ikenna Ogoke, V.C Ogueze, ACA, PhD.

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Abstract

This study examined the effect of saving deposit on the growth of Nigeria economy using time series data from 1994-2019. Data were sourced from Central Banks of Nigeria Statistical Bulletin real gross domestic product was modeled as the function of Private sector savings deposit; State government savings deposit and Local government savings deposit. This study employed the Autoregressive Distributed Lag (ARDL) bounds test approach. Findings of the study established that saving deposit explained 98.08 percent variation in Nigeria real gross domestic product. The Error Correction was found to be 66.02% speed of adjustment per annum the errors of the model corrected each period. The result of long-run ARDL estimation proved that PSSD, SGDD and LGDD showed a positive and significant relationship to Real Gross Domestic Product in Nigeria. Pairwise Granger Causality revealed no evidence of causality between exogenous variables and RGDP. From the findings we conclude that Private Sector Savings Deposit, State Government Savings Deposit and Local Government Savings Deposit yielded positive and significant relationship with RGDP. We recommend that more incentives need to be in place to discourage leakages and high volatility of foreign savings deposit towards improved growth of the local economy.

keywords:

Saving Deposits, Real Gross Domestic Product, Private Sector Saving Deposit, State

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