Bank lending or credit is one of the monetary instruments use by government through CBN to control banks as well as boosting the nations activities. This study examinesthe effect of lending by Deposits Money Banks’ (DMBs) on economic growth of Nigeria from 1981 to 2016. The population of study is 64 DMBs that includes 45 defunct and 19 existing DMBs operating in the Nigeria banking industry as at December, 2016. The entire population constitute the sample frame for the study and tool for analysis is regression.The study found that estimated coefficient Beta values of the DMBs’ lending and DMBs’ lending rate fall withinlower and upper boundary of confident interval at 95%. This means bank lending affects the economic growth of Nigeria. The regression results indicated that DMBs’ lending has positive and significant effect on economic growth. But DMBs’ lending rate haspositive and insignificant effect on economic growth. The results of this study have both theoretical and practical implications to economy of Nigeria. Thus, this study recommends that the management of DMBs should encourage their banks to increase bank lending to key sectors of economy that will use it in productive ventures, thereby boosting the economic growth of Nigeria. The reason is that one percent increase in DMBs’ lending will significantly increase the economic growth of Nigeria for the periods of study.