Impact of nigeria capital market in financing industrial development in nigeria

To a great extent, the positive relationship between capital accumulation and real economic growth has long been affirmed in economic theories Anyanwu, Success in capital accumulation and mobilization for development varies among nations, but it is largely dependent on domestic savings and inflows of foreign capital. Therefore, to arrest the menace of the current economic downturn, effort must be geared towards effective resource mobilization.

Impact of nigeria capital market in financing industrial development in nigeria

The Nigerian financial sector is undoubtedly the most important in the political economic system because it provides the necessary lubricant that keeps the wheel of the economy turning and it is an engine for economic growth.

The sector provides fund for investment and also allocates these funds for investment and also allocates these funds as efficiently as possible to those project that offers best returns to fund owners.

The well being of the sector to a very large extent determines a growing economy. However, if the sector happens to be weak, the economy suffers for it. There are various financial market which are institutional arrangement that facilitates the intermediation of funds in an economy.

The market which deals with sort term funds and the capital market that is for long term dealings in loanable funds Anyanwu The basic of distinction between eh money market and the capital market lies in the degree of liquidity of instrument bought and sold in each of the market which can be subdivided into the primary and secondary market is concerned with raising of new fund, the secondary market exist for the sale and purchasing of existing securities.

Therefore enabling savers who purchased securities when they had surplus to recover their money when they are in need of cash Afolabi The major concern for the study is the money market, the money market represent the short end of the financial system which provide short term investment having a maturity date of less than one year.

Also the money market is an intermediary for short term financial asset that are close substitute for money in Nigerian money market as established by the Central Bank of Nigeria primarily for mobilizing domestic savings for productive investments as well as providing government with funds to enable implement programmes.

The Nigeria money market offers opportunity for trading in the short term instrument which are very liquid and have negligible risk and the money market also provides the basis for implementation of monetary policy.

The types of instrument traded are treasury bill, treasury certificate, commercial paper, bankers acceptance etc. The role of the money market in the development of the economy cannot be overemphasized as the money market plays a key role in banks liquidity management and transmission of money policy by providing the appropriate instrument and partners for liquidity trading, the money market allows re-financing of short term positions and facilitates the mitigation of business liquidity.

However, a developed money market has different types of near asset in large number such as promissory note, treasury bill etc. The market also attracts adequate funds and easy access to financial sources from within an outside the country.


Therefore the money market needs to be infused with more liquidity to ensure safety for investors in order to help fund economic development.

The largest problem with the market is corruption of the system that even transparency cannot fix, provision of more regulation will be appropriate.

Iyiegbuniwe pointed out that although the Nigerian money market has experienced significant growth, both in breadth of securities as well as the volume of trading since the liberalization of the financial system sinceit still needs to be deepened further to achieve the required vibrancy that is expected of a money market.

This does not mean that the money market is inefficient, it goes a long way to explain that there is serious need to evaluate its performance in relation to its contribution to economic development of the country.

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Therefore, the Nigerian money market should be deep and broad to be able to absorb large volume of transaction without substantial effect on security prices and interest.

The above defining feature of the market demands that, there exist many active market participation such that the transaction of an individual investor will have just little impact on security prices and interest rate.

It also requires that there are different varieties of securities to ensure that there is always alternative other options investment instrument available to be able to satisfy the respective return and risk of investors.

Impact of nigeria capital market in financing industrial development in nigeria

Therefore, a deep and broad market which is very efficient in information and operations including an adequate regulation and more liquidity will contribute to the development of the Nigerian economy.

Some other objectives are written below: To examine if the Nigerian money market has developed.

Impact of nigeria capital market in financing industrial development in nigeria

To examine the relationship between the money market and the economic development in Nigeria. The Nigerian money market has not developed H1: The Nigerian money market does not contribute to the economic development of the Nigerian economy.

The study will be a reference material for further study on the market and the economic development of Nigeria. The result of the study will contribute to practical knowledge, the existing body knowledge advancement and stability of the Nigerian economy.

The bank and other financial sectors of the economy will be well guided in the effect of the money market to the development of the Nigeria economy.

ongoing debate on whether capital market in Nigeria has aided industrial development. To the best of our knowledge, this study is the first to use an expanded period of time and modern econometric techniques in examining empirically the impact of capital market on industrial sector development in Nigeria. ABSTRACT This research work was embarked upon with a view to determine the impact of the capital market on the economic growth of Nigeria. The capital market was set up to achieve specific objectives which would boost the economy such as encourage domestic savings and increasing the quantity and quality of investments. than an instrument for mobilizing industrial finance. It is recommended therefore that the regulatory authority A comparison of the Nigeria capital market with, for example, those of Korea, Malaysia and India impact of capital market in mobilizing domestic resources for economic development in Nigeria. II. Literature Review.

It will provide various policy recommendations to policy makers on ways to use money market instrument more effectively in the developing Nigerian economy. The empirical investigation of the role of money market in the development of the Nigerian economy shall be restricted to the period from The data to be used for the regression are annual data sourced from different authorized bodies such as the Central Bank of Nigeria etc.

The accuracy of the data is subject to sincerity and dedication of the officials involved in the collection and collation of data. All the above may not be achieved due to time constraint.Financing Industrial Development In Nigeria: A Case Study Of The Small And Medium Enterprises In Kwara State Akoja Roseline Ayodeji1 (seed) capital, and source of business/financial information and membership of business/trade organization formed the core.

IMPACT OF THE NIGERIAN CAPITAL MARKET ON THE ECONOMY ⃰Dr. Adeoye Amuda Afolabi The research question is that to what extent can the Nigerian Capital Market impact on the economy of Nigeria?. development in the economy bearing in mind the function that sees the capital market financing the financially deficit sectors of the economy.

The Nigeria capital market is a highly specialized and organized financial market and indeed essential agent of economic growth and development because of . Dec 02,  · The empirical investigation of the impact of the capital market on the economic growth in Nigeria shall be restricted to the period between and due to the non-availability of some important data.

Significance of the Study. The study will explore the impact or effectiveness of capital market instruments on Nigerian economic growth.

THE IMPACT OF CAPITAL MARKET ON THE ECONOMIC GROWTH IN NIGERIA. Statement of Research Problem The impact of the capital market on the growth and development of the After payment you will get the full project or call or email [email protected] PARTNERSHIP After purchasing your own project materials from us, you can become.


The key purpose of this research work as to empirically the impact or extent to which capital market finance, particularly the stock exchange market have contributed to economic development in Nigeria. Based on this, the general objectives of the study are outlined below: 1. To evaluate the role capital economic growth and development of Nigeria.


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