UNDERSTANDING PRIVATE SAVINGS BEHAVIOUR IN NIGERIA: AN EMPIRICAL ANALYSIS

The objective of this paper is to investigate the determinants of private savings in Nigeria. The core private savings model was estimated as well as its eclectic variants to provide insights into the behaviour of private savings in Nigeria. The results are quite illuminating. While some of the variables had their hypothesized signs, others were counter-intuitive. For instance, while our results repudiated the efficacy of financial liberalization as a tool for the mobilization of private savings, it substantiates the adverse effects of an external debt overhang and terms of trade deterioration on private savings. Finally, the paper recommends an enhancement in per-capita incomes and a stable macro economy to facilitate savings and cautions on the dangers of adopting foreign models uncritically.