Title: CAPITAL MARKET GROWTH TRAJECTORY, FINANCIAL DEVELOPMENT AND ECONOMIC GROWTH IN NIGERIA. ANALYSIS OF PUBLIC AND PRIVATE DEBT SECURITIES

Author: Dr. S.L.C Adamgbo

Abstract: This study examines stock market development and economic growth in Nigeria. The time series data spanning the periods, 1981 to 2023 obtained from the Central Bank of Nigeria statistical bulletin was utilized in exploring the impacts of the stock market expansion on the Nigerian economic growth proxied by the gross domestic product while ratios of stock market capitalization, total securities traded, private and public securities traded relative to the GDP were used in measuring stock market development. The correlational research design within the regression framework useful for the study was employed. The findings ofthis study revealed that there exist a short-run, very strong positive and significant linear link between stockmarket capitalization, value of total securities traded and the Nigerian GDP, while private and public debt securities show a weak and insignificant relationships, consistent with the finance-led growth hypothesis, result of the short-run analysis confirmed the critical role of the stock market growth in economic prosperity. Though the correlation estimations at the long-run showed a weak and insignificant correlation between parameters of the stock market development indicators and economic growth in Nigeria suggesting that the expansion in stock market is yet to really impact economic growth in practical terms in Nigeria, hence, the study suggests that, a simplify listing procedures to promote broader participation. The need for the regulatory authorities to strengthen institutional framework should focuss on improving transparency, investor, protection, adherence to corporate governance principles capable of improving market confidence and encourage broader/deeper financial intermediation amongst other things.

Keywords: Stock market development, debt, capitalization, securities traded.

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