THE IMPACT OF CAPITAL INVESTMENT IN NIGERIA ECONOMY

CHAPTER ONE

INTRODUCTION

1.1 STATEMENT OF THE PROBLEM AND PURPOSE OF THE STUDY

Inactivity and not living up to expectation since inception had been the Nigerian capital market critism (by Adam smith in his book “the injury). This is because an active capital market is supposed to mobilize saving effectively for investment purposes. It could be recalled that capital investment is possible in all ramifications if there is a well articulated capital market to help business communities.

Purpose of the study

In the light of the above problems leading to slow rate of capital investment when compared with 1st and 2nd world countries, the purpose of this study is to investigate through the extent of the Nigerian capital investment and the impact so for in the Nigerian economy with a view to suggesting for improvement.

1.2 RATIONALE OF THE STUDY

It is a known fact that for meaningful economic transformation of a country her capital investment must be virile and the economic strength of nation is measured according to how active or effective her capital is / or are performing its purpose function.

the Nigerian economic is characterized by “a low rate of industrialization, low rate of productivity import dependence visions circle of poverty” which are all characteristics of under development according to Karl Max.

1.3 SIGNIFICANCE OF THE STUDY

The significance of this study will therefore be of benefit to the government and the central bank for them to plan, initiate programme and actions and a sound frame work on government monetary policies to sustain the economy.

This institutional operators of the money and capital markets, to their financial institution like commercial banks, non – banking financial societies like cooperative societies, insurance and reinsurance companies, business communities, government companies and parastatals, including future researchers in the academic filed who will like to share this world of experience will find this project work beneficial.