Impact of Nigeria Capital Market Activities and Economic Development in Nigeria

Abstract

This study examines the impact of Nigeria capital market activities and economic development in Nigeria within a period of ten years (2009-2019). This study make used of secondary data which were obtained from Central Bank of Nigeria (CBN) statistical bulletin covering the period of (2009-2019). Both descriptive and inferential tools were employed in this study. This study employed multiple regression model and Pearson pairwise correlation to analyze the secondary data. Result from the analysis revealed that significant relationship exists between Gross Domestic Product (GDP) and capital market development indicators, which include allsh are index, turnover ratio, number of institution and number of deals to have a significant effect on the activities of capital market given a P-value of 0.0261, R² = 0.8526 and adjusted R²= 0.7346. Also, result from the analysis revealed that the combined effect of capital market development indicators on economic development is significant given a P = 0.0073, R² = 0.9132 and adjusted R² = 0.8438. In the light of the above findings, It is therefore recommended that the need to introduce and implement policies that will increase the level and size of market capitalization in the Nigerian capital market by the government through the Central Bank as increase in market capitalization will surely increase fund availability for desired investment which in turn will increase productivity of the Nation