Thesis Abstract

Abstract
The capital market plays a crucial role in facilitating economic development by providing a platform for raising long-term funds for businesses and governments. This study aims to explore the impact of the capital market on economic development, focusing on how it fosters investment, promotes innovation, and enhances overall economic growth. Through a comprehensive review of existing literature, this research examines the various mechanisms through which the capital market contributes to economic development, including capital mobilization, risk management, and resource allocation. The findings suggest that a well-functioning capital market can significantly boost economic development by channeling savings into productive investments, thereby increasing productivity and creating employment opportunities. Moreover, by enabling companies to access a diverse range of financing options, the capital market promotes entrepreneurship and innovation, leading to technological advancements and industry growth. Additionally, the capital market enhances liquidity and price discovery, which improves market efficiency and investor confidence, further stimulating economic activity. Furthermore, the study highlights the importance of regulatory frameworks and institutional infrastructure in ensuring the effective functioning of the capital market. Strong legal and regulatory frameworks are essential for investor protection, market transparency, and overall market integrity, which are crucial for attracting domestic and foreign investments. Additionally, the presence of reliable market infrastructure, such as stock exchanges, clearinghouses, and depositories, is vital for facilitating efficient trading and settlement processes, thereby enhancing market liquidity and investor participation. The research also explores the role of government policies and interventions in promoting the development of the capital market. Proactive government initiatives, such as the implementation of supportive regulations, tax incentives, and investor education programs, can create a conducive environment for capital market growth. Moreover, strategic partnerships between the public and private sectors can help bridge infrastructure gaps and enhance market competitiveness, ultimately driving economic development. In conclusion, the capital market serves as a critical tool for economic development by mobilizing savings, facilitating investment, and stimulating growth. By promoting financial inclusion, fostering innovation, and enhancing market efficiency, the capital market contributes to sustainable economic development and prosperity. Policymakers, regulators, and market participants must work together to strengthen the capital market ecosystem and leverage its potential for driving economic progress.

Thesis Overview

The research work is on the contribution of the Nigerian Capital Market to the nations economic development and growth.

The research is aimed at the following:

a. To demonstrate that individuals and corporate participation in the Nigerian Capital market will help in no small measure in the channelisation of long-term funds for investment purposes within the economy.

b. To demonstrate the fact that the Nigeria capital market is an economic institution with the sole aim of promoting efficiency and discipline in capital formation and allocation for an overall development and growth of the economy.

c. Seeks to demonstrate that with her better trained workforce via the acquisition of new skills and technology, the Nigerian capital market is listed in some other markets within Africa and is seriously reaching out to other parts of the world thus attracting foreign investors and injecting more funds into the system for productive purposes and economic growth.

d. While creating a paying ground capable of ensuring honesty, transparency and fairness for quality services that will enable more companies being listed for quotation on the exchange; this no doubt, will engender wider private sector participation and a boom to the economy.

e. To establish the fact that the Nigerian capital market stimulates industrial growth and development in Nigeria, and lastly to recommend steps based on the findings.

In the course of the study, the following findings among others were made.

(i) Following the Federal Government recent reforms in reshaping the economy into something better; especially in the financial and other sectors, such that banks and non-banking institutions now rush to the Nigerian Capital Market to shop for funds, thus boosting the market.

(ii) These reforms provided opportunities for the small companies to become quoted and have access to funds in the capital market.

(iii) It was discovered that with the introduction of Structural Adjustment Programme (SAP) and privatization exercise going on, the Nigerian Capital Market has facilitated the transfer of enterprises from the public to private sector for a better restructuring and management.

(iv) That internationalization of the Nigerian Capital Market has made possible substantial injections which pumped up the volume of economic activities within the country.

(v) That despite Government’s consistencies in her fiscal and monetary policies, Nigerian Capital Market has recorded a total of N2.96Trillion and growth rate of over 35% over the past 12 years.

In conducting the research, frequency tables, percentages and chi-square (X2) distributions were used as statistical tool.

In the end, summary, conclusion and recommendations were drawn.