Title:
The Capital Market and Economic Growth in Nigeria

Authors:
Dr. Grace O. Evbuomwan and Mr. Martins I. Oramulu, Nigeria

Abstract:

The capital market offers access to a variety of financial instruments which are very essential for government and private businesses in need of long-term funds. The objective of this study is to determine the effect of capital market on economic growth in Nigeria being an alternative source of finance for investment.  The data used for the study were obtained from the Central Bank of Nigeria Statistical Bulletin and World Development Indicators, spanning 1985-2021 and, analyzed using Auto-regressive distributive lag (ARDL) on Eviews. Value of transactions, all share index, government stocks, corporate bonds, equities and inflation rate; were the independent variables, while economic growth proxied by gross domestic product was the dependent variable. The results obtained showed that equities and all share index had positive and significant effects on economic growth in Nigeria. We therefore, recommend that the Securities and Exchange Commission should come up with measures that will boost investors’ confidence in the Nigerian capital market and make it a veritable alternative source of finance for businesses.

DOI: https://doi.org/10.51505/IJEBMR.2024.8908