This study examined the effect of fiscal deficits on private savings in Nigeria from 1981 to 2023. The research used data on private sector savings deposit, fiscal deficit as a percentage of gross domestic product - GDP, broad money supply as a ratio of GDP in %, private sector credit as a ratio of GDP in % and exchange rate from the statistical reports of Nigeria’s central bank. The main analytical technique applied was the Autoregressive Distributed Lag - ARDL Bounds testing method. The results revealed there is a long-term connection between the variables studied. The results also revealed that in the long run, fiscal deficit and private sector credit as a ratio of GDP in % have a positive though not significant relationship with private savings. At the same time, broad money supply as a ratio of GDP in % has a negative association with private savings. Meanwhile, exchange rate has a positive and significant relationship with private savings. In the short run, fiscal deficits, private sector credit as a ratio of GDP in %, broad money supply as a ratio of GDP in % and exchange rate have positive association with private savings. Interestingly, only broad money supply as a ratio of GDP in % is statistically significant. Based on these findings, the study submitted that sustained increases in private savings require policies that enhance household income, strengthen financial intermediation, ensure macroeconomic stability, and improve the productivity of government expenditures. Such measures are more likely to generate meaningful and lasting improvements in the nation's savings performance and economic development. Policymakers should encourage deposit money banks and other financial institutions to extend credit to sectors with high growth and employment potential, including agriculture, manufacturing, small and medium-scale enterprises (SMEs), and technology-based industries. Such measures would enhance productive capacity, increase income generation, and subsequently boost private savings. Policymakers should prioritize measures that enhance income levels, strengthen financial sector development, improve financial inclusion, and maintain macroeconomic stability. These policies are more likely to generate sustainable increases in private savings and support long-term economic growth and development in Nigeria.