THE IMPACT OF CAPITAL INVESTMENT ON THE NIGERIA ECONOMY

CHAPTER ONE

INTRODUCTION

1.1    STATEMENT OF PROBLEM

A lot of capital investment are made in our country today wither on stocks and shares, tangible assets etc, still our country is still experiencing low capital investment in the country when compared with 1st and 2nd World country of the World. But we still see various efforts made by the government and capital market to improve the rate of our capital investment in Nigeria.

Despite all these efforts made by the government and capital market to increase the rate of capital investment in Nigeria, we still have low impact rate on the capital investment in Nigeria. Why? It is of this fact that the researcher has decided to investigate, the extent of the Nigerian capital investment and its impact in the economy.

1.2    RATIONALE OF THE STUDY

Being a student studying a course relating to finance, I have some reasons which prompted me to carry on this research on the impact of capital investment on Nigeria economy. One of the reasons is to find out the actual impact which capital investment play in the development of Nigeria economy.

Another reason behind my course of carrying this topic is to know some of the factors affecting capital investment in Nigeria economy.

Thirdly, I equally want to know capital investment and the national development plan as it concerns capital investment.

Fourthly, I equally want to know the major constraints in capital investment in Nigeria.

It is of this facts that the researcher has decided to carryout this research work and finally give solutions and recommendations where needed.

1.3     SIGNIFICANCE OF STUDY

This topic, “the impact of capital investment will be of great importance to all investors in the country when will implemented by the users.

BANKERS: Bankers will equally benefit from such write-ups as this will increase the “morale of investors and make them to invest and subsequently lead to investment banking in Nigeria.

INDIVIDUALS AND CORPORATE BODIES: Individuals and corporate bodies will equally benefit from this research work because the researcher took time to bringout the necessary steps for capital investment in Nigeria.

THE ECONOMY:The economy will equally benefit as this will increase the economic development of the country thereby increasing GNP of the counting as this stires up the mind of investors.

1.4    DEFINITION OF TERMS

CAPITAL BUDGETING: This is a process of planning expenditures whose returns are expected to extended beyond one year when business enterprises makes a capital investment.

CAPITAL: This is that part of resources or input which are part of factors of production.

CAPITAL INVESTMENT: This started to be notice predominantly immediately there arose the growth from subsistent economy to capitalist economy, socialist or mixed economy.

THE CAPITAL MARKET:The capital market can be defined as a complex of institution and mechanism where be medium and longterm funds are put together and made available and where by instruments already outstanding and transtered.