Nigeria’s national savings rate has fallen steadily over the past four decades, even though the country now has a larger working-age population. This raises the question of whether the Life-Cycle Hypothesis (LCH) still explains saving behavior in Nigeria. This study examined the relevance of the LCH using annual data from 1981 to 2022 and applied both the standard ARDL model and the Quantile ARDL approach. In the short run, the findings revealed that the dependent population reduces savings, while the working-age population increases them, conforming to the predictions of the LCH. However, in the long run, youth dependency increases savings, but these effects disappear once key socioeconomic and macroeconomic factors such as income, employment, inflation, interest rates, and education are taken into account. When these factors are included, youth dependency becomes negative in both the standard and Quantile models. This means that weak economic conditions limit the ability of young dependents to become productive adults who can later contribute to savings. Based on the results, the study recommends strengthening pension and social security systems, improving employment opportunities for the working-age population, and investing in child development to address the demographic pressures that directly affect savings in Nigeria.
