The Role of Stock Broking Firms in the Development of Nigeria Capital Market: a Case Study of Selected Stock Broking Firms in Kano Metropolis

In contemporary societies, time is crucial, and financial resources are highly valued, prompting the need for a platform where users and savers can easily interact for lending and borrowing. This platform is known as the financial market, which is divided into money and capital markets. The capital market plays a key role in channeling long-term funds from savers to users, providing capital for investments with returns that take over one year to materialize. According to Ayodele (2023), the capital market is “a network of specialized financial institutions that bring together suppliers and users of capital in various ways.” Njoku (2021) defines the capital market as “a segment of the financial system that facilitates the provision of medium- to long-term funds for businesses and government investment needs.” The primary objective of the capital market is to enhance a nation’s capacity for capital formation and ensure efficient allocation of these resources through a price mechanism. Similarly, Adeyemi (2022) notes that the capital market serves as “the long-term end of the financial market, facilitating the mobilization and allocation of long-term funds for projects with tenors of over a year.” The Nigerian Stock Exchange (NSE) plays a vital role in mobilizing both private and public savings and encourages large-scale enterprises to access public listings. The NSE manages a main exchange for larger enterprises and a secondary tier for smaller businesses with fewer listing requirements. The primary goal of the NSE is to raise long-term funds for investment and enhance capital efficiency by providing a market measure of returns. Usman (2020) highlights the functions of the stock market, including the allocation of scarce resources, the creation of continuous markets for listed securities, and facilitating new financing options. Studies by Olanrewaju (2022) and Olugbenga (2021) confirm that the performance of the stock market significantly impacts economic activities, particularly through profitable investments. Both scholars agree that advancements in the Nigerian Stock Exchange are positively correlated with Nigeria's economic growth, particularly following the introduction of reforms like the Structural Adjustment Programme (SAP), which has spurred growth in sectors like finance and insurance. In Chapter Two, a review of related literature was conducted to explore the concept and structure of the capital market, which is divided into the primary and secondary markets. Empirical studies indicate a significant relationship between investment and capital market performance, with findings reinforcing the importance of the market's efficiency. In Chapter Three, the research adopted a survey methodology, utilizing primary data collected through structured questionnaires. Data analysis was conducted using tables, percentages, and chi-square methods. Chapter Four presented the findings derived from secondary data, analyzed using Statistical Package for the Social Sciences (SPSS).