Abstract: This study examines the determinant of dividend payout in the Nigerian banking industry over the period 2004-2013. The study used five sample banks out of fourteen banks quoted on the floor of the Nigerian stock Exchange as at December 2012. Secondary data were used for the research work and the data were obtained from Nigerian Stock Exchange (NSE) fact book 2011/2012. The variables used were dividend payout, profitability, liquidity, Size and financial leverage. The data collected was analyzed using multiple regression and Pearson correlation. The finding revealed that profitability, liquidity, size and leverage proved to be the determinant of dividend payout of banks in Nigeria, while liquidity and profitability are the most critical factors determining dividend payout of banks in Nigeria. It is recommended that Banks should try all their best in improving their liquidity position since it has greater influence.