CAPITAL MARKET DEVELOPMENT AND ITS CONTRIBUTION TO FINANCIAL SECTOR DEVELOPMENT IN NIGERIA- AN EMPIRICAL ANALYSIS
Motivated by the potential of capital markets in advanced countries this study sought to seek the performance of the Nigerian capital market. The broad objective of this study is to examine the performance of Nigerian capital market. The study employed data from the CBN and NBS statistical Bulletins with the aid of a line graph and multiple regressions to investigate the specific objectives. The result shows that credit to the private sector, value of trade, money supply and all share index are significant determinants of the capital market, while National Income, Foreign Portfolio Investment, Total Saving and Inflation are not significant determinants of the capital market. The result further shows that the 1995 Nigerian Investment Promotion Act on the capital market does not significantly impact on stock market capitalisation. In addition, the result show that market capitalisation does not significantly impact on financial sector development in Nigeria. The study recommends that there is need for more policies made and more awareness enhanced to develop the capital market and increase its significance in the financial sector development.