Abstract

This study was carried out to determine the Effect of Capital Market Institutions on the Development of Nigerian economy with specific objectives being to determine the effect of Capital Market performance on unemployment rate in Nigeria; to assess the effect ofCapital Market performance on poverty level in Nigeria and to ascertain the effect ofCapital Market performance on the standard ofliving in Nigeria. The study made use of descriptive research design using ordinary least square regression analysis to analyse the data with the aid of Eviews9. The findings ofthe study revealed that an increase in the Capital Market performance will decrease Unemployment rate, an increase in the Capital Market performance will lead to decrease in poverty level, and an increase in the Capital performance will lead to increase in standard of living. The study also revealed that Capital Market performance has significant effect on unemployment rate in Nigeria, there is significant effect of Capital Market performance on poverty level in Nigeria, and there is significant effect of Capital Market performance on standard of living in Nigeria. The study therefore recommended that the relevant regulatory agencies in the capital market should be focused on enhancing the efficiency and transparency ofthe market in order to improve investor's confidence. Also, there is needfor effective andfavourable macroeconomic environment to facilitate the causalityfrom stock market to economic growth. It must be understood that growing economics with significant and consistent impact on living standards of the people are a product of effective social, economic and political institutions and his is a major setback in the Nigeria environment. Thus there is the need to ensure that the channels of capital market induced growth are built around effective systems and that the policy institutions are actively involved in marking systemic checks and appropriate policy innovations to ensure capital market lead economic growth.