Financial Sector Reforms and Savings Mobilization in Nigeria (1980 – 2013)

Financial Sector Reforms and Savings Mobilization in Nigeria (1980 – 2013)

A.V. Ahmed¹; Dr. Awonusi Frank²; Adebanjo Joseph Falaye²& Ewunuga, Yemisi Adebimpe³

¹Department of Economics, Landmark University, Omu-Aran, Kwara State

²Department of Accounting and Finance, Landmark University, Omu-Aran

Email: awonusi.frank@lmu.edu.ng,victorayodele911@gmail.com,yeameasea17@yahoo.com, falaye.adebanjo@lmu.edu.ng

Corresponding Author:  Dr. Awonusi Frank

ABSTRACT

This study examined the impact of financial sector reforms on savings mobilization in Nigeria between the period of 1980 and 2013. It specifically examined the effects of financial sector reforms variables namely ratio of domestic credit given to the private sector to Gross Domestic Product, prime lending rate, ratio of broad money supply to Gross Domestic Product. Others include percentage contribution of financial sector to Gross Domestic Product, Inflation and Dummy variable (a measure of pre-reform and post reform periods) on savings mobilization (measured by domestic savings ratio) in Nigeria. Using the ordinary least square (OLS) estimation technique, the time series data used in the study were sourced mainly from CBN statistical bulletin and Annual Report and Statement of Account. The result obtained from the regression analysis confirmed that financial sector reforms variables used in the study have been effective in enhancing savings mobilization in Nigeria. Hence the need for policy makers and regulators to initiate policies that will ensure stability of the financial sector, reduce lending rates and increase credit to the private sector.

Keywords: Financial Sector; Reforms; Savings Mobilization