COMPARATIVE STUDY OF NIGERIAN ECONOMY GROWTH AND DEVELOPMENT ON THE IMPACT OF CAPITAL MARKET: A CASE OF SELECTED FEDERAL CAPITAL TERRITORY FCT ABUJA

Abstract

This paper studies the elements upon which a nation’s economic development is dependent. The importance of the Capital Market as one of the vehicles upon which most underdeveloped economies could grow cannot be overemphasized. The extent to which these economies experience the said growth is quite relative to the level of awareness and management of the market. Nigeria is not left out in the desire to maximize the gains of the capital market to boost its economy. This paper empirically examines the impact of the Nigerian Capital Market on the Nigerian economy looking at a 20-year period from 2002 to 2022. The Nigerian Capital Market was a proxy for Market Capitalization against some variables of the economy such as Gross Domestic Product (GDP), Foreign Direct Investment, Inflation Rates, Total New Issues, Value of Transactions, and Total Listing. Using the multiple regression analysis, we find that Capital Market has an insignificant impact on the Economy within the period under review. The study therefore advised that policies and measures that would boost investors’ confidence should be enshrined in the running of the Nigerian Capital Market so that it could contribute significantly to the growth of the Nigerian economy noting that all elements of the market are essential ingredients to the development of a nation.