Original Research Article | OPEN ACCESS
Determinants of Aggregate Savings in Nigeria

A. I. Imoisi , C. Iyafekhe, F. O. Ezeibekwe

Department of Economics, Edo University Iyamho, Edo State; 2Department of Accounting, University of Benin, Edo State.

For correspondence:-  A. Imoisi   Email: mcanthonyby@yahoo.co.uk

Received: 29 Jan. 2018        Accepted: 25 March 2018        Published: 31 March 2018

Citation: Imoisi AI, Iyafekhe C, Ezeibekwe FO. Determinants of Aggregate Savings in Nigeria. Account Tax Rev 2018; 2(1):186-198 doi:

© 2018 The authors.
This is an Open Access article that uses a funding model which does not charge readers or their institutions for access and distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0) and the Budapest Open Access Initiative (http://www.budapestopenaccessinitiative.org/read), which permit unrestricted use, distribution, and reproduction in any medium, provided the original work is properly credited..


This paper examines the impact of national income; savings deposit rate and inflation rate on Nigeria’s aggregate savings from 1982 to 2016 using data collected from Central Bank of Nigeria (CBN) statistical bulletin (2016) and Databank of the Word Bank. Graphical and trend analysis, descriptive statistics and stationarity test were conducted in the study. For the estimation, we employ the Ordinary Least Squares (OLS) and Cointegration test. The regression result, in line with economic theory, suggests that national income and savings deposit rate have positive and significant impact on Nigeria’s aggregate savings; while inflation rate is negative and not significant. The independent variables explain 98% of the total variation in aggregate savings. Johansen cointegration test indicates that a long-run, or equilibrium, relationship exists between savings and its determinants. The study recommends that effort should be geared towards improving per capita income in the country in a bid to accelerate investment and growth through savings.

Keywords: Total Savings, National Income, Savings Deposit Rate and Inflation Rate

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