THE ROLE OF NIGERIAN CAPITAL MARKET IN THE GROWTH OF INDUSTRIAL SECTOR. A CASE STUDY OF UNILEVER NIGERIA PLC

ABSTRACT

Capital market is a financial  institution set up for the granting of medium and long term instrument. It is an instrument of financing the activities of the various sector of the Nigerian economy.

The major concept of this work is to identify and discuss the contributions on the roles of the Nigerian capital market in mobilizing long term hence for the development of industrial sector.

Also to examine the activities of the  Nigeria capital market and their direct impact. It has on the Nigerian industrial sector.

Also to identify the problems and prospectus of Nigerian capital market in financing and sustaining industrial enterprises.

Most of their information for the study was obtained from the secondary sources and they were extracted from the central bank of Nigerian publications 2005 and business news, daily newspaper, also simple regression and correlation analysis were used in the study.

TABLE OF CONTENTS

Title page

Approval page                                                  ii

Dedication                                                      iii

Acknowledgments                                            iv-v

Abstract                                                          vi

Table of contents                                             vii-ix

CHAPTER ONE

1. Introduction                                            1-3
   1. Statement of the problem                  3-4
   1. Need for the study                            4-5
   1. Objectives of the study.                    5
   1. Research questions/ hypothesis         5-6
   1. Scope of the study                            7
   1. Assumptions of the study.                  7-8
   1. Limitations of the study.                    8-9
   1. Definitions of terms.                          9-10

CHAPTER TWO

• Literature review.                                                11-13
  • Historical background of the research problem13-16
  • Theories and models to the research hypothesis 16-22
  • Current literature based on each of the relevant variables of the models or theory.                 23-37
  • Summary of the chapter.                              38      

CHAPTER THREE

• Theoretical framework and methodology               39
  • Introduction.                                                39
  • Theoretical framework                                  39
  • Rational for choice of variables                       42
  • The methodology                                          42
  • Data selection and analysis.                         43-46

CHAPTER FOUR

• Presentation And Analysis Of Data                            47
  • Introduction                                                     47
  • Data presentation classification and calculations.47-48
  • Analysis of data according to research hypothesis48-55
  • Analysis of data according to test hypothesis. 55-56
  • Interpretation of results.                               57-59

CHAPTER FIVE

• Summary, Conclusion And Recommendations        60
  • Summary                                                    60-61
  • Conclusions                                                 61-62
  • Recommendations                                        62-63
  • Areas for further study                                  63

          Bibliography                                             64-65

          Appendix                                                 66-73

CHAPTER ONE

1.0 INTRODUCTION

The Nigerian capital market has always played significant role in the economic growth and development of the nation. In time of economic boom, it assist in the provision of finance for expansion, retooling and establishment of production facilities. Also incurrent period of recession it has been providing finance for maintaining existing facilities diversification and acquisitions. The capital market spearheads the  ongoing prudential structural adjustment of our national economy which will call for huge financial commitments of a reasonable proportion of the financial needs. Under this structure re arrangement will certainly be met through the  assistance of the Nigerian capital market.

A  said feature of the  Nigerian economic landscape is the large number of industrial projects of the federal and  state government as well as the  compelling if an unequipped private sector to assume greater responsibilities in the economy in order to who may concern reduced the domineering status of  foreign bodies.

The oil boom of the 1970;s made it possible for government to embark on various industrial projects.

However, the non- completion or under utilization cases where some of  them are sully executed of these projects an owners to waste of scare services resources under the government  industrialization programme consideration are given to the small and medium scale enterprises (SME) which form the center or the industrial development of the country. Unfortunately, the SME are only living in the shadows of large business for so long hence their importance as roots to the economic health of a nation have been forgotten the problems of  SME ranges from improper policies which has been constitutes by the authorities guiding them to the problems of taste of the Nigerians citizens with regards to foreign products as well as the problems of finances for the formation and  sustenance or SME’s.

1.1 STATEMENT OF THE PROBLEM

The Nigerian industrial sector in spite of the grate potential has failed to achieve the great aim of converting Nigeria into industrialized country, on like (1994) stated that there is apathy of our indigenous companies to see quotation on the stock exchange second tier securities market was established to remove the obstacles that militate against indigenous companies seeking quotation and to provide wider and cheaper long term source if financing for small and medium indigenous companies. In spite of this most indigenous companies still sly away from the stock market, come cause of these are the requirements if the stock change as been developed over the year. Based on the above analysis these question arise why do our industrialist sly away from capital market in spite of its numerous benefits?

Do our industrialists loose their enterprises by quotation on the capital market? Are the disadvantages of capital market out weighting the advantages. This research work seeks to answer these questions.