Measuring the Impact of Bank Deposit Mobilisation on the Growth of the Nigerian Economy

Ebere Ume Kalu, Kalu Idika Awa, Ndubuisi Udemezue, Valentine Ike Olisekebe, Peter Oniga Oko


This study explores the effects of bank deposits on Nigeria's economic growth for the period 1985 to 2020. The specific objectives are to establish the impact of commercial and merchant bank deposits on Nigeria's economic growth. The ex-post facto research design was employed. We carried out preliminary tests (unit root and descriptive) and diagnostic tests (autocorrelation, heteroscedastic, normality, CUSUM, etc.). Estimation was done with the autoregressive distributed lag model technique. It was found that bank deposits had a long-run relationship with economic growth and that the error correction term is significant and negatively signed. Thus, we recommended, amongst others, that a substantial share of bank deposits should be directed to the real sectors of the economy like agriculture and manufacturing, as this will act as an economic growth enabler.


commercial banks; merchant banks; deposits; economic growth

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