Ugbaja, Okafor Chukwu
Department of Business Management, Faculty of Management Sciences, Imo State University, Owerri, Nigeria.
Abstract
This study examined the role of the Nigerian capital market in economic growth and development, analyzing its impact on investment and financial stability. Utilizing a quantitative research methodology, the study employs time-series data from 2000 to 2022, sourced from the Nigerian Stock Exchange (NSE), Central Bank of Nigeria (CBN), and National Bureau of Statistics (NBS). The data is analyzed using regression models and correlation techniques to determine the relationship between market performance indicators—such as market capitalization, total value of transactions, and all-share index—and Nigeria’s Gross Domestic Product (GDP). The results indicate a strong positive correlation (r = 0.78, p < 0.05) between market capitalization and GDP growth, suggesting that a well-functioning capital market significantly contributes to economic expansion. Furthermore, findings show that a 10% increase in market capitalization leads to a 4.5% rise in GDP, highlighting the capital market’s vital role in financial intermediation. Figures and tables illustrate the trends in stock market activities, trading volumes, and foreign portfolio investment, demonstrating a steady increase in market participation over the past two decades. The study concludes that strengthening regulatory frameworks and enhancing market liquidity can further improve the capital market’s contribution to Nigeria’s economic progress.
Keywords: : Capital Market, Economic Development, Investment, Market Efficiency, Regulatory Framework, Nigeria
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References
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Citation
OC Ugbaja (2025). A comparative study of the performance of commercial banks and microfinance institutions in Nigeria. International Journal of Scholarly Resources, 18(2).