BANK DEPOSIT MOBILIZATION AND ECONOMIC GROWTH IN NIGERIA
Abstract
This article empirically analyzed how bank deposit mobilization affected Nigeria's economic growth from 1986 to 2020. The purpose of this study was to determine how bank deposits, government spending, and inflation affected the Nigerian economy. The study employed annual time series data from the CBN statistical bulletin and NBS annual gazette to achieve this goal. Expost facto research was used with the ordinary least square (OLS) regression technique and additional diagnostic tests (autocorrelation, normality, CUSUM) to verify the results. The descriptive and empirical analysis showed that bank deposits and government expenditure positively and significantly affected economic growth represented by per capita real income. The empirical results also suggest that inflation hurts Nigeria's economy. Thus, the study found that the variables are vital to Nigeria's economic growth. Since deposits are the main source of funds and driver of economic growth, banks should prioritize deposit mobilization.