The study investigates the relationship between the reforms of banking business and performance of private sector in Nigeria; for the period (1998-2023). Secondary data is use and collects from the Central Bank of Nigeria Statistical Bulletin, 2023. The study employs Private Sector Growth (PSG) as the dependent variable to measure the performance of Private Sector in Nigeria; while, Lending (LR), Credit to the Private Sector (CPS) and Total Bank Deposits (TBD) are also employed as the explanatory variables. Hypotheses were formulated and tested using time series econometric models. The study reveals that the variables do not have unit roots. The study indicates a long-run equilibrium relationship between banking business reforms and the performance of private sector and the result confirms about 78% short-run adjustment speed from long-run disequilibrium. The coefficient of determination shows that about 62% of variation in the performance of private sector economy can be explain by changes in banking business reforms variables. The study reveals a causality between banking business reforms and the performance of private sector economy in Nigeria. The study recommends that government and monetary authorities should be more proactive in bank supervision and to ensure vibrant supervisory framework based on prudence and professionalism. Monetary policies should be properly managed and structured towards stimulating and deepening the private sector economy. Banking institutions should ensure effective management of their resources that will enable them to intermediate in the private sector economy of Nigeria.