CAPITAL MARKET, A TOOL FOR ECONOMIC GROWTH IN NIGERIA

CAPITAL MARKET, A TOOL FOR ECONOMIC GROWTH IN NIGERIA (ECONOMICS PROJECT TOPICS AND MATERIALS)

ABSTRACT

The Project work studies capital market as a tool for economic growth in Nigeria and other countries. The method of data collection is the use secondary data from CBN statistical bulletin using the Multiple regression Analysis. The Major Findings of the research work is to find out the Impact of the Capital Market on the Nigerian economy. The results shows that Capital Market has Contributed Positively towards Economic Growth in Nigeria.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The capital market is a highly specialized and organized financial market and indeed essential agent for economic growth because of its ability to facilitate and mobilize savings and investment. To a great extent, the positive relationship between capital accumulation and real economic growths has long affirmed in economic theories (Anyanwu, 1993), Success in capital accumulation and mobilization for development varies among nations but it is largely dependent on domestic savings and inflow of foreign capital. Therefore, to arrest the menace of the current economic downturn, effort must be geared towards effective resources mobilization. It is in realization of this that consideration is given to measure for the development of capital market as an institution for the mobilization of finance from the surplus sectors to the deficit sectors.

The development of capital market in Nigeria, as in other developing countries has been induced by the government. However, prior to the establishment of stock market in Nigeria, there existed some less formal market arrangements for the operation of capital market. It was not prominent until the visit of Mr. J. B. Lobynesion in 1959, on the invitation of the Federal government, to advice on the role the Central Bank could play in the development of local money and capital market. As a follow-up to this, the government commissioned and set up the Barback Committee to study and make recommendations on the ways and means of establishing a stock market in Nigeria as a formal capital market. Acting on the recommendation of the committee, the Lagos Stock Exchange (as it was called then) was set-up in March 1960, and in September 1961, it was incorporated under Section 2 cap 37,through the collaborative effort of Central Bank of Nigeria, the Business Community and Industrial Development Bank (Alile&Anao, 1990).

CAPITAL MARKET, A TOOL FOR ECONOMIC GROWTH IN NIGERIA (ECONOMICS PROJECT TOPICS AND MATERIALS)