Real Interest Rate and Savings Mobilization in Nigeria


This study empirically assessed the impact of real interest rate on savings mobilization in Nigeria. The Vector- Auto Regression (VAR) was employed, using the time series data from 1980 to 2008. The study revealed that real interest rate has negatively impacted on the level of savings mobilization in Nigeria. The need for government in Nigeria to bridge the existing gap between the lending and savings rates and increase per capita income level of the populace, to stimulate savings for investment and economic growth were revealed by the study. Therefore, efforts should be geared towards reducing domestic inflation rate to arrest its negative impact on real rates in Nigeria.

Keywords: Inflation Rate, Lending Rate, Real Interest Rate, Savings Mobilization And Nigeria, Vector Auto Regression

Article Review Status: Published

Pages: 28-40 (Download PDF)

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