A critical review of literature reveals that the debate on financial liberalization thesis still remains largely unresolved. Thus, using a quarterly time series data, this study examines the nature of causality among financial liberalization, real interest rate and savings mobilization as well as how they interact with one another in Nigeria. Granger causality test was employed in determining the nature of causality between financial liberalization and real interest rate on one hand and real interest rate and savings mobilization on the other hand. Impulse response function of the VAR system was used to ascertain how financial liberalization, real interest rate and savings mobilization interact with one another. The granger causality test shows an absence of causality between financial liberalization and real interest rate, a scenario that was replicated between real interest rate and savings mobilization. The results of the impulse response function reveal a positive interaction between financial liberalization and real interest rate as well as a positive or direct interaction between financial liberalization and savings mobilization. We therefore recommend that the monetary authorities in Nigeria should be consistent in evolving and maintaining policies that will enhance the full maximization of the benefits of liberalization.