Impact of Capital Market on Economic Growth in Nigeria, 2000-2020

Mbah Alex Chukwuebuka, Opata Nneamaka Mary-Blessing and Okechukwu Mmesoma Valentine

Department of Banking and Finance, Faculty of Management Sciences Enugu State University of Science and Technology, Agbani

ABSTRACT

The aim of this study was to determine the impact of capital market on economic growth in Nigeria, 2000-2020. The objectives of the study include; to ascertain the impact of Market Capitalization on Gross Domestic Product of Nigeria, to evaluate the effects of Governmennt Development Stock on Gross Domestic Product of Nigeria, to investigate the impact of All Share Index on Gross Domestic Product of Nigeria and to examine the impact of Total Value of Transaction on Gross Domestic Product of Nigeria. The study used ex post facto research design, descriptive statistics, unit root test and Auto Regressive Distributed Lag Model as analytical techniques. It was found out that market capitalization exert a positive and significant influence on Gross Domestic Product of Nigeria. Government development stock has positive and significant effect on Gross Domestic Product of Nigeria. All Share Index has positive and significant effect on gross domestic product of Nigeria. And total value of transaction has positive and significant effect on Gross Domestic Product of Nigeria. The study recommended that there is need for the government through the central bank to implement policy that will increase the level and size of market capitalization in the capital market. Such increase in capital market will provide the needed funds for investors for further investments and hence increased productivity in Nigeria. The positive impact of number of deals also calls for proper policies to be implemented so as to attract more investors to invest in the market. There is also need to relax some stringent registration and operating procedures to enable more people and organizations to participate in the market. Also, there is need to institute policies that will further increase the value of market transaction in the market. As stated earlier there is need to remove hindrances on the part of prospective investors so as to increase both the volume and value of transactions in the market. An increase in the value of transaction will in turn lead to economic growth in Nigeria. This study will trigger tremendous increase in economic growth of Nigeria, as stakeholders will make apposite reforms in the capital market as contained herein.

Keywords: Economic, Growth, Capital Market, Nigeria

CITE AS: Mbah Alex Chukwuebuka, Opata Nneamaka Mary-Blessing and Okechukwu Mmesoma Valentine (2025). Impact of Capital Market on Economic Growth in Nigeria, 2000-2020. NEWPORT INTERNATIONAL JOURNAL OF CURRENT RESEARCH IN HUMANITIES AND SOCIAL SCIENCES, 5(2):17-24. https://doi.org/10.59298/NIJCRHSS/2025/5.2.1172400