ABDURRAHEEM, ABDULAZEEZ ADEWUYINAIM, Asmadi Mohamed2021-07-052021-07-052018https://uilspace.unilorin.edu.ng/handle/20.500.12484/6174Effective lending portfolio construction is one of the most complex problems which the management of financial institutions across the globe has to tackle on a continuous basis. This study investigates the determinants of commercial banks portfolio construction in Nigeria covering a period of 35 years (1977- 2012). The Ordinary Least Square (OLS) technique is used to confirm the appropriate relationship between commercial banks' loans and advances (dependent variable) and lending portfolio determinants proxies by volume of commercial banks deposits, loan to deposits, liquidity ratio, lending rate, investment portfolio, inflation and cash reserve ratio. (independent variables). From the result, the study finds that five variables are significant while commercial banks deposits have the greatest impacts on commercial bank lending construction in Nigeria. However, two of the independent variables including inflation and liquidity ratio are not significant. The study among others recommends that, the Central Bank of Nigeria (CBN) should moderate the Monetary Policy Rate (MPR), promote low lending rate, favourable cash reserves, and liquidity of the banks, so as to facilitate investment and price stability in the economy. This is expected to promote credit expansion and invariably returns and profitability of the deposit money banks in Nigeria.Sub-Sahara Africa, Infrastructure deficit, SukukArticle