The Role of Capital Market in Development of Nigeria Economy

Student: Tobiloba Deborah Afolabi (Project, 2025)
Department of Finance
Ekiti State University, Ado-Ekiti, Ekiti State

Abstract

The main objective of this study is to examine the role of capital market in development of Nigeria economy. The study used secondary data sourced from central bank of Nigeria annual statistical bulletin between 2011 to 2024 and were subjected to Ordinary Least Square (OLS) technique for short run analysis, the Auto Regressive Distributed Lag (ARDL) model for co-integration and long run analysis in the presence of mixed integration order, as well as the Engle Granger causality technique to test for causal relationship between the variables. The Auto Regressive Distributed Lag (ARDL) model result revealed that revealed all variables, except Market Capitalization exerted no significant impact on Nigeria economy in the long run and the impact was negative. and the following recommendations were made, Regulatory authorities such as the Securities and Exchange Commission (SEC) should implement measures to enhance market transparency, reduce speculative activities, and ensure that market growth is driven by productive investments, policies should be introduced to encourage broader participation in the capital market, the government should adopt a balanced tax policy that maximizes revenue while ensuring businesses remain competitive.

Keywords
capital market development nigeria econom role objective study model impact
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