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This study critically examined the nexus between macroeconomic dynamics, bank-specific factors and deposit mobilization of the Nigerian banking sector. Macroeconomic dynamics was proxied by inflation rate, lending rate, exchange rate, government expenditure, unemployment rate and Gross domestic product (GDP) while bank-specific factors was proxied by deposit interest rate, branch network expansion and bank’s liquidity. The study which is ex-post facto, relied mostly on secondary data which were collected through the Central Bank of Nigeria (CBN) and National Bureau of Statistics (NBS) statistical bulletin from 1985-2018. Multiple regression Ordinary Least Square (OLS) statistical tool was applied to establish the like fit to the observed data and the degree of relationship that exist between variables. The granger causality test was employed to establish the causal relationship between the variables. Findings revealed among others that inflation rate measured by the consumer price index and deposit interest rate have negative and significant relationship with deposit mobilization in Nigeria. Exchange rate, unemployment rate and loan-to deposit ratio have negative and insignificant relationship. Lending rate and Government expenditure have insignificant positive relationship while it was only Gross domestic product and number of bank branches that have positive and significant relationship with deposit mobilization in Nigeria. It was recommended among others that deposit interest rate should be fixed based on the level of customer’s deposit so as to act as compensation against the rising trend in inflation rate and also, banks should be more socially responsive by partnering with the Government and other private sectors in sponsoring various entrepreneurship and skill acquisition training programmes in the country that are employment driven. This will ensure that a good number of the unemployed persons are into paid employment and are earning. This will in turn boost their deposit base.
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