The topic of project work is the role financial institution in promoting banking habit and saving capital formation in Nigeria, it is aimed at investigating the activities a financial institution banking habit and saving capital formation in Nigeria for the growth and development of the economy. The financial intermediation process of financial institution [commercial bank is such that needs close and urgent attention the sources of data used by the research during the research work are primary and secondary sources of data. The methods of these data collection are questionnaire, interview, observation etc. the research used simple percentage as a technique for research analysis, which the result obtained from the were used to observed that the promotional activities of financial institution have improved banking habits in Nigeria. Therefore, the researcher conducted that the reform from the study we can confidently assert that commercial banking has contributed significantly to the economic development of the country by the re-capitalization exercise introduced by the CBN among there recommendation are, that banks have to play a great role in stabilizing the economy through deposit creation and also increase the confidence of the banking public.