This study evaluated the causal relationship between deposit money bank credit and economic growth in Nigeria over the period 1981-2014. The technique of analysis employed was the Vector autoregressive (VAR) Granger causality test. The proxied variables, real gross domestic product (RGDP), private sector credit (PSC) and broad money supply (M2) were subjected to preliminary tests while a validity test of serial autocorrelation was also conducted on the residuals of the variables. The results revealed a unidirectional causality running from private sector credit and broad money supply to economic growth as measured by real gross domestic product (RGDP), whereas there was no feedback system from RGDP to either PSC or M2. In other words, RGDP was neither Granger causal for PSC nor M2. This result confirms the significance of financial development to economic growth. Banking system credit is therefore critical for the growth of the economy. This finding is in tandem with the supply-leading hypothesis, and the policy implication is that the Central Bank of Nigeria (CBN) and the Federal Ministry of Finance should ensure that the financial system is not only healthy but efficient. It is recommended that credit should be channeled, at concessionary costs, to the private sector of the Nigerian economy since their activities is proven to stimulate economic growth.