ABSTRACT

 This project work examines the role of the Nigerian stock Exchange in the economic development of Nigeria. The result support the already existing evidence that the Nigerian stock exchange is the prime motor and engine that drives the economy on the path of growth and development and capital fonnation. The data needed for the analysis were gathered through the secondary data method which is derived from journals, statistical bulletins, annual reports and accounts of both the Nigerian stock exchange and central Bank of Nigeria. Ordinary least square technique (simple linear regression) statistical tools was used in testing the hypothesis. The results show that a stock exchange is a place were enormous capital can be raised at such competitive terms and conditions. The procedure agreed with the objectives hypotheses and research questions. It is also believed that the increased volume of new issues and market capitalization is a reinforcement of the testimony of the great impact on the Nigeria economy of Nigerian stock exchange despite its limitation in capital formation more especially in rural areas. The research therefore recommends that the Nigerian stock exchange should liberalize its market in order to increase the efficiency of level of its operations. It should, in its effort to aid economic growth, provide more incentives for listing on the exchange, engender a more realistic approach to security pricing and establish another stock exchange instead of opening more trading floors.