The impact of capital market on economic growth and development in nigeria

 

Table Of Contents

  • <p> <b></b></p><p><b>Title<br>page &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; i</b></p><p><b>Declaration – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; ii</b></p><p><b>Certification &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; iii</b></p><p><b>Dedication &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; iv</b></p><p><b>Acknowledgement &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; v</b></p><p><b>Table<br>of Contents &nbsp; &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; vi</b></p><p><b>Abstract &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; x</b></p><p><b><b>

Chapter ONE

INTRODUCTION

  • </b></b></p><p><b><b></b></b></p><b><b><p>
  • 1.0&nbsp; &nbsp; Introduction &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 1</p><p>
  • 1.1&nbsp; &nbsp; Background of the Study &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 1</p><p>
  • 1.2&nbsp; &nbsp; Statement of the Problem &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 4</p><p>
  • 1.3&nbsp; &nbsp; Objectives of the Study &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 5</p><p>
  • 1.4&nbsp; &nbsp; Research Questions &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 5</p><p>
  • 1.5&nbsp; &nbsp; Hypothesis of the Study &nbsp; &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 6</p><p>
  • 1.6&nbsp; &nbsp; Significance of the Study &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 6</p><p>
  • 1.7&nbsp; &nbsp; Scope and Limitation of the study &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 7</p><p>
  • 1.8&nbsp; &nbsp; Organization of the Study &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 7</p><p>
  • 1.9&nbsp; &nbsp; Definition of Terms &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 8</p><p><b>

Chapter TWO

LITERATURE REVIEW

  • </b></p><p><b></b></p><b><p>
  • 2.0&nbsp; &nbsp; Introduction &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 11</p><p>
  • 2.1&nbsp; &nbsp; The Concept of Capital Market &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 12</p><p>2.
  • 1.2Definition of Capital Market &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 13</p><p>2.
  • 1.3Capital Markets Components and function &nbsp; &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 13</p><p>2.
  • 1.4Role of Capital Market – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 15</p><p>2.
  • 1.5Features of the Capital Market &nbsp; &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 17</p><p>2.
  • 1.6Types of Capital Market &nbsp; &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 19</p><p>
  • 2.2&nbsp; &nbsp; Recent development in the Capital Market – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 24</p><p>
  • 2.3&nbsp; &nbsp; Prospects of the Nigerian Capital Market – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 27</p><p>
  • 2.4&nbsp; &nbsp; Challenges of the Nigerian Capital &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 28</p><p>
  • 2.5&nbsp; &nbsp; Capital market and Economic Growth &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 30</p><p>
  • 2.6&nbsp; &nbsp; Overview of the Nigerian Capital Market &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 33</p><p>
  • 2.7&nbsp; &nbsp; The Nigerian Security and Exchange<br>Commission &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 36</p><p>
  • 2.8&nbsp; &nbsp; The Nigerian Stock Exchange – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 38</p><p>
  • 2.9&nbsp; &nbsp; Economic Growth &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 40</p><p>
  • 2.10&nbsp; Impact of capital Market on Economic Growth<br>and Development in</p><p>&nbsp;Nigeria &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 41</p><p>
  • 2.11&nbsp; Empirical Review – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 42</p><p>
  • 2.12&nbsp; Empirical Review on Nigeria &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 44</p><p><b>

Chapter THREE

RESEARCH METHODOLOGY

  • </b></p><p><b></b></p><b><p>
  • 3.0&nbsp; &nbsp; Introduction &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 47</p><p>
  • 3.1&nbsp; &nbsp; Research Design &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 47</p><p>
  • 3.2&nbsp; &nbsp; Research Area &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 48</p><p>
  • 3.3&nbsp; &nbsp; Source of Data Collection &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 48</p><p>
  • 3.4&nbsp; &nbsp; Data Analysis Technique &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 49</p><p>
  • 3.5&nbsp; &nbsp; Model Specification &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 49</p><p><b>&nbsp;</b></p><p><b></b></p><b><p><b>

Chapter FOUR

DATA PRESENTATION AND ANALYSIS

  • </b></p><p><b></b></p><b><p>
  • 4.1&nbsp; &nbsp; Presentation and analysis of Regression Results – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 51</p><p><b>&nbsp;</b></p><p><b></b></p><b><p><b>

Chapter FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

  • </b></p><p><b></b></p><b><p>
  • 5.0&nbsp; &nbsp; Introduction &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 57</p><p>
  • 5.1&nbsp; &nbsp; Conclusion – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 58</p><p>
  • 5.2&nbsp; &nbsp; Recommendation – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 59</p><p>References – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; – &nbsp; &nbsp; &nbsp; 60</p></b></b></b></b></b></b></b></b> <br><p></p>

Project Abstract

<p> This study<br>investigated the impact of capital market on economic growth and development in<br>Nigeria. This study was informed based on the gap between capital market growth<br>in Nigeria and unstable economic growth in the country. Based on this,<br>identified research objectives include to evaluate the impact of the capital market<br>on economic growth and development in Nigeria, to access the case with which<br>firms and businesses in Nigeria can access funds in the capital market and to<br>identify the challenges facing the market and its impact on businesses in the<br>country. The research was set to attain these objectives through the analysis<br>of the following research questions and hypothesis which includes; there is no<br>significant relationship between GDP and capital market activities which were<br>measured using market capitalization and All- share index (ALSI). Data required<br>for the study was collected using secondary sources through Central Bank of<br>Nigeria (CBN) Statistical Bulletin 2015, and the data collected crossed 30<br>years (1985-2015). Simple linear regression using Ordinary Least Square<br>(method) was employed in the analysis of the data. The findings include<br>thatMarket Capitalization has a direct and significant relationship with Gross<br>Domestic Product (GDP), while all share index has a negative but significant<br>effect on Gross Domestic Product (GDP) in Nigeria. It was concluded that<br>capital market activities in Nigeria has a significant impact on economic<br>growth and development in Nigeria. It was recommended that there is need for<br>more reforms in the Nigerian capital market to ensure that there is more<br>pronounced impact in the economic growth and development in Nigeria, and that<br>there is need for capital market to promote private domestic investment in<br>Nigeria to enhance the growth of GDP in<br>Nigeria, <br></p>

Project Overview

<p> <b><b><b><b><b><b><b><b><b><b><b></b></b></b></b></b></b></b></b></b></b></b></p><p><b><b><b><b>INTRODUCTION</b></b></b></b></p><p><b><b><b></b></b></b></p><b><b><b><p><b>1.0 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br></b><b>INTRODUCTION</b></p><p><b></b></p><b><p>The capital market in any country is one of the major pillars of long<br>term economic growth and development. The market serves a broad range of<br>clientele including different levels of government, corporate bodies, and<br>individuals within and outside the country. For quite some time, the capital<br>market has become one of the means through which foreign funds are being<br>injected into most economics, and so the tendency towards a global economy is<br>more feasible/visible there than anywhere else. It is, therefore, quite valid<br>to state that the growth of the capital market has become one of the barometers<br>for measuring overall economic growth of a nation. Thus, an increase in the<br>market share of a public limited liability company through the sales of its<br>shares increases its capital base and encourages expansion leading to a higher<br>level of growth and productivity. This study will try to clarify these and<br>related issues.</p><p><b>1.1 &nbsp; &nbsp; BACKGROUND OF THE STUDY</b></p><p>The capital market is a highly specialized and organized financial market<br>and indeed essential agent of economic development because of its ability to<br>facilitate and mobilize saving and investment. To a great extent, the positive<br>relationship between capital accumulation real economic growths has long<br>affirmed in economic theories. Anyanwu (1993). &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; Success in capital accumulation and<br>mobilization for development varies among nations, but it is largely dependent<br>on domestic savings and inflows of foreign capital. Therefore, to arrest the<br>menace of the current economic downturn, effort must be geared towards<br>effective resources mobilization. It is in realization of this that<br>consideration is given to measure for the development of capital market as an<br>institution for the mobilization of finance from the surplus sectors to the<br>deficit sectors. (Alile&amp;Anao, 1990). &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; The development of capital market in Nigeria, as in other<br>developing countries has been induced by the government. Though prior to the<br>establishment of stock market in Nigeria, there existed some less formal market<br>arrangements for the operation of capital market. It was not prominent until<br>the visit of Mr. J. B. Lobynesion in 1959, on the invitation of the Federal<br>government, to advice on the role the Central Bank could play in the<br>development of local money and capital market. As a follow-up to this, the<br>government commissioned and a set up the Barback Committee to study and make<br>recommendations on the ways and means of establishing a stock market in Nigeria<br>as a formal capital market. Acting on the recommendation of the committee, the<br>Lagos Stock Exchange (as it was called then) was set-up in March 1960, and in<br>September 1961, it was incorporated under Section 2 cap 37, through the<br>collaborative effort of Central Bank of Nigeria, the Business Community and Industrial<br>Development Bank.Central Bank of Nigeria (2009). &nbsp; &nbsp; &nbsp; With the establishment of the Central Bank of Nigeria in 1959<br>and the coming into existence of the Lagos Stock Exchange in 1961 and<br>Subsequently, the Nigeria Stock Exchange by an Act in 1979, a sound foundation<br>was laid for the operation of the Nigerian Capital Market for trading in<br>securities of long term nature needed for the financing of the industrial<br>sector and the economy at large. After the incorporation of the Lagos Stock<br>Exchange, it was granted further protection under the law and its activities<br>were placed under some sort of control by the government, hence the passing of<br>the Lagos Stock Exchange Act. However, the Lagos Stock Exchange was only<br>operational in Lagos. By the mid 70’s, the need for an efficient financial<br>system for the whole nation was emphasized, and a review by the government of<br>the operations of the Lagos Stock Exchange market was advocated. The review was<br>carried out to take care of the low capital formation, the huge amount of<br>currency in circulation which was held outside the banking system, the<br>unsatisfactory demarcation between the operation of Commercial Banks and the<br>emerging class of the Merchant Banks, and the extremely shallow depth of the<br>capital. In response to the problems mentioned above, the government accepted<br>the principle of decentralization but opted for a National Stock Exchange,<br>which will have branches in different parts of the country. On December 2nd<br>1977, the memorandum and article of association creating the Lagos Stock<br>Exchange was transformed into the Nigerian Stock Exchange, with branches in<br>Lagos, Kaduna, Port-Harcourt, Yola and in Federal Capital Territory (FCT) Abuja<br>and some other cities. &nbsp; &nbsp; Ogwunike, F.O.<br>&amp;Omole , D.A (1996). &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; The history of<br>Nigeria Capital Market could be traced to 1946 when the British colonial<br>administration floated a N600, 000 local loan stock bearing interest at 3¼% for<br>the financing of developmental projects under the Ten-Years Plan Local<br>Ordinance. The loan stock, which had a maturity of 10-15 years, was<br>oversubscribed by more than N1 million, yet local participation of the issue<br>was terribly poor. Certainly, prospects for investment in Nigeria, but the<br>overriding consideration in this project is to examine the impact of the capital<br>market in harnessing and mobilizing these resources (funds) to generate<br>economic growth in the country and consequently economic development.</p><p><b>1.2 &nbsp; &nbsp; STATEMENT OF THE PROBLEM</b></p><p>Some Nigerian businesses do not have access to long-term capital, and<br>there is enough proof to show it. The business sector has depended mainly on<br>short-term financing such as overdrafts to finance, long-term project. Based on<br>the maturity matching concept, such financing is risky. Most recent literature<br>on the Nigeria capital market has recognized the tremendous performance the<br>market has recorded in recent times. This study is undertaken to examine the<br>contribution of the capital market in the economic growth and development of<br>Nigeria. &nbsp;The delay created by the meagreness<br>of finance to the economy constitutes a major setback to its development. In<br>view of this, it is necessary to evaluate the Nigerian capital markets ability<br>to provide long term funds for growth and development.</p><p><b>1.3 &nbsp; &nbsp; OBJECTIVES OF THE STUDY</b></p><p>The broad objective of this study is to study the impact of capital<br>market on the economic growth and development in Nigeria. The specific<br>objectives of the study are as follows:</p><p>1. &nbsp; To evaluate the impact of the capital market on economic growth<br>and development in Nigeria.</p><p>2. &nbsp; To access the ease with which firms and businesses in Nigeria can<br>access funds in the capital market.</p><p>3. &nbsp; To identify the challenges facing the market and its impact on<br>businesses in the country.</p><p><b>1.4 &nbsp; &nbsp; RESEARCH QUESTIONS</b></p><p>This research was guided by the following research questions:</p><p>i. &nbsp; &nbsp; What is the impact of the capital market on economic growth and<br>development in Nigeria?</p><p>ii. &nbsp; How can the capital market through its<br>crucial role stimulate economic growth in Nigeria?</p><p>iii. &nbsp; What are the challenges facing capital market<br>of market operations in Nigeria.</p><p><b>1.5 &nbsp; &nbsp; HYPOTHESIS OF THE STUDY</b></p><p>The hypothesis that would be tested in the course of this research is<br>stated below as:</p><p><b>Hypothesis 1:</b></p><p><b></b></p><b><p><b>H0</b>:<br>There is no significant relationship between GDP and capital market activities</p><p><b>Hypothesis 2:</b></p><p><b></b></p><b><p><b>H0:</b><br>There is a negative relationship between GDP and market capitalization.</p></b></b></b></b></b></b> <br><p></p>
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