This research work is on the effect of real sector finance on banking sector depending. The study focus on three specific objectives; real sector savings on banking sector deepening, interest paid on loan by real sector on banking sector deepening, transaction cost incurred by real sector on banking sector deepening. In line with this objectives, hypothesis were formulated in their null form. The study is anchor with economic development theory by schumpeters. An expo-factor design was adopted for the study, time series data for five years (2012-2016) were retrieved from CBN statistical bulletin. Data collected were analyzed using OLS regression techniques. The study revealed that real sector savings as a significant effect on banking sector deepening (