The Impact Of Capital Market Operations On The Development Of Nigerian Economy

ABSTRACT

 The stock market is a common feature of a modem economy and it is reputed to perform some necessary functions, which promote the growth and development of the economy. The study is aimed at examining the contributions of the Nigerian stock exchange to the development of Nigeria economic. The research was conducted using secondary source of data from CBN statistical bulletin, National Bureau of statistics and NSE fact books of various volumes. The ordinary least squares regression (OLS) method was employed using the data from 2000 to 2008. The result indicates that the Nigerian stock market contributes to the development of Nigeria economy, capital formation (CF), all-share index (ASI), total turnover value, new issues and number of listed securities impacted positively on the Gross domestic product (GDP) are statistically significant at 5% level. Based on the findings, the study recommends that, the demand for the services of the stock market is derived demand with the existence of a positive relationship between stock market development and economic growth; it is pertinent to recommend that there should be sustained effort to stimulate productivity in both the public and private sector. And also, the market is faced with problems of public awareness and adequate sensitization. In this view, the Nigerian Stock Exchange should without further delay organize more seminars and public awareness campaigns. This could be done through the print and electronic media and even online.