Capital Market Development and Economic Growth in Nigeria

This study focuses on providing empirical evidence on the significance of the capital market as a panacea of economic growth in Nigeria. The capital market is a network of financial institutions and infrastructure that interact to mobilize and allocate long-term funds in the economy. The capital market is a highly specialized and organized financial market and indeed an essential agent of economic growth because of its ability to facilitate and mobilize saving and investment. The general objective of the study was to examine the impact of Capital Market on economic growth in Nigeria. Specifically amongst others, the study also evaluates the impact of market capitalization on capital formation and real gross domestic product in Nigeria. Five research questions were raised to guide the study and five hypotheses were also formulated to check for the trueness of the study. The data used for the study were obtained from secondary sources and the data was analysed using multiple regression analysis.