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Otiwu K.
Peter A Okere
Uzowuru L.N


This study empirically evaluates the determinants of private domestic savings in Nigeria (1981- 2015). Secondary data were sourced from CBN statistical bulletin and bureau of statistics. Hypotheses were formulated and tested using vector error correction model (VECM) and the test for stationarity proves that the variables are integrated in 1(1) order which implies that unit roots do not exist among the variables. There is also long-run equilibrium relationship between the variables and the result also confirms about 29 percent short-run adjustment speed from long-run disequilibrium. The coefficient of determination indicates that about 78 percent of the variations in private domestic savings are explained by changes in its determinants in Nigeria. The results show that per capita income and financial inclusion are major determinants of private domestic savings in Nigeria. The study therefore recommends that concerted and well articulated efforts should be made to make available and affordable credits to productive investments like small scale industries/businesses as they constitute an integral part of the growth and transformation process of an agro based economy like that of Nigeria this will induce employment, increase financial access and income of the various economic agents which will have a spillover effect on private savings. Secondly, since Per capita income and financial inclusion are the important factors that influence private savings in Nigeria, policy makers can promote growth of per capita income by improving productivity of workers and greater effort should be geared towards sustaining or improving on the financial inclusion strategies.


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K., O., Okere, P., & L.N, U. (2018). DETERMINANTS OF PRIVATE DOMESTIC SAVINGS IN NIGERIA (1981- 2015). International Journal for Innovation Education and Research, 6(2), 21-40. Retrieved from
Author Biographies

Otiwu K., Imo State University, Nigeria

Banking and Finance Dept.

Peter A Okere, Imo State Polytechnic, Nigeria


Uzowuru L.N, Federal Polytechnic Nekede, Imo State

Banking and Finance Dept.


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