The study was carried out to investigate the effects of macroeconomic and banking sector-specific variables on domestic currency deposits in Nigeria within a temporal scope 2000-2018. On the theoretical threshold of Ayodeji-Ajala bank-intermediation (economic value) theorem, the study proxied the dependent variable, domestic currency deposit, by total domestic currency deposit of banks, and the independent variable, deposit determinants, by three macroeconomic variables (interest rate, gross domestic product, inflation) and two banking sector-specific variables (private sector credit and bank size). Secondary data were sourced from the Central Bank of Nigeria statistical bulletin of various editions, and were estimated using Auto Regressive Distributed Lag (ARDL) approach. It was found that, while interest rates exhibited insignificant negative effects on domestic currency deposits in Nigeria, inflation rate exerted significant negative effect on it, and gross domestic product exerted significant positive effect on it. It was, also, found that, private sector credit exerted a significant positive effect on domestic currency deposit while bank size exhibited insignificant positive effect on it. It was, further, found that, a significant long-run relationship existed between deposit determinants and domestic currency deposits in Nigeria. It was, therefore, concluded that macroeconomic and banking sector-specific variables exert significant long-term influence on domestic currency deposits in Nigeria. It was, therefore, recommended that, government should effectively adopt the instruments of monetary and fiscal policies for enhancing the effects of interest rates and curbing the effects of inflation on the Nigerian economy. Also, banks are encouraged to invest more on their assets, as this would help attract more customers of various types while they should increase private sector credits, and channel the same to the productive sector of the economy so that economic growth can be enhanced.