ABSTRACT

 The study evaluated the impact of capital market on economic growth in Nigeria within the period of 1981 to 2018. The specific objectives ofthe study were to investigate the impact of capital market on economic growth in Nigeria and to ascertain the long run relationship between capital market and economic growth in Nigeria. The study employed ex post facto research design. Thus use Ordinary Least Square (OLS) regression technique and Johansen CoIntegration test in finding objectives. It was revealed that; market capitalization and total value ofstock has a positive and significant impact on economic growth in Nigeria while all share index has a positive but insignificant impact on economic growth in Nigeria, also a long run relationship exist between capital market and economic growth in Nigeria. It is therefore concluded that capital market has a positive impact on economic growth in Nigeria. Based on the findings, we recommended that; government should improve the market capitalization by encouraging more foreign investors to participate in the market, to maintain stale of the art technology like automated trading and settlement practice, electronic fund clearance and eliminate physical transfer ofshares. To boost the value ofstock in the Nigerian capital market, there is need for availability of more investment instruments such as derivatives, convertibles, future, and swaps options in the market. As a result of the long run the government should encourage the development ofcapital marketfinancing in the country, for this will be visible on economic growth.