Savings, Investment and Economic Growth in Nigeria: An Autoregressive Distributive Lag Approach


  • Osmond Chigozie Federal University
  • Adeleke Omolade University of KwaZulu-Natal


ARDL, Investment; Economic Growth; Savings, Structural Breaks, Nigeria.


The study examined the impacts of savings and investment on economic growth in Nigeria, using some
statistical tests such as ARDL estimating technique, Augmented Dickey Fuller (ADF) and Bound co-integration test on
Nigerian data from 1980 to 2019. The estimation results show that savings and investment have negative and statistically
significant effect both in the short-run and long-run on economic growth in Nigeria. These suggest that Nigeria has grossly
low saving culture and may be experiencing deficient demand problems. This result affirms the classical view that both
savings and investment equilibrates. Infrastructural facilities (proxy by electricity) have negative and significant effects on
economic growth in Nigeria. The implications are that private provision of electricity is usually not cost effective and seems
to have a negative implication on the business’ profitability. It is therefore recommended that the focus of development
policies in Nigeria should be on the monetary and fiscal policies, as to encourage high investment and saving culture.

Author Biographies

Osmond Chigozie, Federal University

Department of Economics

Adeleke Omolade, University of KwaZulu-Natal

School of Accounting, Economics and Finance


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Economic Development, Technological Change, and Growth