The Role of Macroeconomic Policies on Savings Mobilization in Nigeria

This research work analyzed the roles of macroeconomic policies on savings mobilization in Nigeria (1985-2018) empirically. The secondary data were adopted and sourced from CBN. Ordinary Least Square and Cointegration were used to determine the role of the selected macroeconomic policies on savings mobilization in Nigeria. The aftereffect of the overall statistic showed that there is a positive and significant impact between the macroeconomic variables and domestic savings mobilization in Nigeria. But in particular, financial deepening appeared to have a greater impact on savings mobilization in Nigeria. Exchange rate and inflation uncovered a reverse relationship with domestic saving mobilization in Nigeria. The Augmented Dickey-Fuller (ADF) unit root tests and cointegration demonstrated that the variables are stationary and there exists a long-run relationship among the variables. The study hence recommended among others that efforts should be geared towards continuous and all-around fiscal and monetary policies that will sustain this development in the financial sector. Additionally, the government ought to guarantee that adequate macroeconomic policies will be set up to attract foreign investors, encourage export, and make Nigeria an export platform where export goods could be delivered, this will assist with strengthening Nigeria’s exchange rate incite domestic savings. Finally, appropriate measures ought to be placed into encouraging banks to open branches in rural areas to mop up deposits. The rural banking policies should be returned to adjusted and implemented in Nigeria. DOI: 10.7176/JESD/12-4-02 Publication date: February 28th 202