Capital market performance and economic growth in Nigeria

Abstract

This study investigated the relationship between capital market performance and the Nigerian economic growth. The ex-post facto research design was adopted in the study to establish the relationship between the dependent and independent variables. Data sourced from the Central Bank of Nigeria (CBN) statistical bulletins and National Bureau of Statistics (NBS) Reports from 1981 to 2022 was employed to achieve the study’s objectives. The multiple regression technique was used to analyse the data with the aid of E-view 12 statistical software. The results of the findings revealed that market capitalization and all share index have significant effect on gross domestic products while total value of listed securities is not a significant macroeconomic determinant factor of economic growth in Nigeria for the years under review. The study recommends that for capital market to perform optimally, the environment must be friendly to promote and encourage investments opportunities. Additionally, in order to ensure economic growth affects the Nigerian capital market positively, it is crucial to remove all bottlenecks and allow free flow of business. This will make it easier for investors to access the capital market, thereby, intensifying the ease of doing business.