CAPITAL MARKET AS A CATALYST FOR ECONOMIC GROWTH: NIGERIA IN PERSPECTIVE

Abstract

The growth of a nation has a related alliance with a capital market that drives the economy and a solid financial base for expansion and development. This research examines the efficiency and effectiveness of the Nigerian capital market as a catalyst for economic growth; this means that the performance of the stock market is an impetus for economic growth and development. This research study involved the use of a questionnaire to collect first-hand data from one hundred and eight (108) respondents. The data collected were analyzed using descriptive statistics such as percentages while the hypotheses were analyzed using chisquare and the appropriate level of confidence (0.05). Finding from the research study showed that the Nigerian capital market and economic growth are integrated, this implies that a long-run relationship exists between capital market and economic growth in Nigerian. Therefore the government must contribute to achieving these objectives through investing government securities in productive sectors and receiving laws that spell threat to the capital market. It is recommended therefore that the regulatory authority should initiate policies that would encourage more companies to access the market and also be more proactive in their surveillance role to check sharp practices which undermine market integrity and erode investors' confidence.