ABSTRACT

The impact of savings on the financial development in Nigeria for the period of 34 years (1981-2015) was examined. The study employed the use of time series data and the OLS estimation technique to estimate the multiple linear regression models developed in the methodology of this study. The key findings of this study include; Real Gross Domestic Product has a positive and significant relationship with financial development in Nigeria. Furthermore, the study revealed that exchange rate has a negative and insignificant relationship with financial development in Nigeria. Finally, the study revealed that there is negative and significant relationship between inflation and financial development of Nigeria. The study recommended that government through monetary authorities should make policies that will maintain stable interest rate and avoid actions that will lead to interest rate fluctuations.