THE GROWTH OF CAPITAL MARKET IN NIGERIA AND THE UNFOLDING ECONOMIC DEVELOPMENT OF THE NATION

TABLE OF CONTENTS

Declaration. iii

Certification. iv

Dedication. v

Acknowledgementvi

Table of Contents. viii

List of Tables. xi

Abstractxiii

CHAPTER ONE. 1

1.1 Introduction. 1

1.2 Features of the Nigeria Capital Market2

1.3 Purpose of Study. 2

1.4 Scope of Study. 2

1.5 Limitation of Study. 3

1.6 Significance of Study. 3

1.7 Statement of Problem.. 4

1.8 Research Question. 5

1.9 Research Hypothesis. 5

1.10 Research Methodology. 5

1.11 Summary. 6

1.12 Glossary of Terminology. 6

CHAPTER TWO.. 7

Theoretical Frame Work and Literature Review. 7

2.1 Introduction. 7

2.2 Nigerian Economic Structure. 7

2.3 Capital Market and the Nigerian Economy. 8

2.4 Events in the Nigerian Capital Market9

2.5 Objectives and Significance of the Nigerian Capital Market12

2.6 Legal and Regulatory Framework of the Nigerian Capital Market13

2.7 Functions of the Nigerian Capital Market14

2.8 Instruments Used in the Nigerian Capital Market14

2.9 Operators and Composition of the Nigerian Capital Market16

2.10 Nigerian Capital Market Growth and the Unfolding Economic Development17

2.11 The Structure of an Economic Indicator of Gross Domestic Product in Nigeria 18

CHAPTER THREE. 21

Research Methodology. 21

3.1 Research Design. 21

3.2 Sources of data. 21

3.3 Sampling Method. 22

3.4 Method of Data Collection. 23

3.5 Questionnaire Assumptions. 25

3.6 Reliability and Validity of data. 26

3.7 Instrument for Hypothesis test26

3.8 Testing the Research Hypothesis Procedure27

3.9 Decision Rule. 27

3.10 Limitation and Constraints. 27

3.11 Establishing Report28

CHAPTER FOUR. 29

4.1 Data Presentation and Analysis. 29

4.2 Research Findings and Interpretation Analysis29

4.3 Questionnaires and BioData Analysis and Interpretation. 30

4.4 Analysis and Interpretation on Economic Appraisal of the Nigerian Capital Market32

4.5 Testing of Hypothesis. 42

CHAPTER FIVE. 47

Summary, Conclusion and Recommendation. 47

5.1 Summary. 47

5.2 Conclusion. 48

5.3 Recommendation. 49

5.4 Suggestion for Further Studies. 51

References. 52

Bibliography. 53

Appendix. 54

ABSTRACT

Capital market in Nigeria has proved to be the bedrock of national economy. The significance of the market in channelling capital fund mobilisation on medium and long term basis for business organisations and government under a developing economy is paramount. The adoption of Information Technology through the Central Securities Cleaning System CSCS Ltd and Automated Trading system enhanced Nigerian stick Exchange Operations. The nations economy has appreciated tremendously through the activities of the Capital Market going by the level of improvement in the economic indicator of Gross Domestic Product as a percentage of Market Capitalisation for the years 1997 and 2006. N34.23 Billion 10.1 of N338.86 Billion and N95.80 Billion i.e. 19.8 of 483.84 Billion respectively. The Capital Market has experienced unprecedented surge in the year 2007. The Market Capitalisation was N4.2 Trillion on Tuesday, the 2nd of January, 2007 and almost doubled in the first half of the year. Sequel to this trend, the Capital Market in Nigeria has the potentials to sustain the pace of growth in the nations economy through Capital formation and allocation.