This study investigates the determinants of saving in Nigeria from the microeconomic perspective. The study particularly focuses on the importance of household socio‐economic characteristics in determining the level of household savings. The study uses the Nigeria Household Survey data to carry out the analysis within the framework of perceived household utility theory. Two‐stage least squares and ordinary least squares methods were employed in the estimations. The results show that household ownership of land, household size, occupation, location and age are significant determinants of household saving in Nigeria. Other determinants are the household living conditions, marital status and availability of infrastructure such as electricity. The results show that household socio‐economic characteristics, locational and zonal factors are important determinants of household saving accumulation in Nigeria and thus should not be ignored by policymakers in formulating capital accumulation policies. © 2019 John Wiley & Sons, Ltd.