ABSTRACT

Nigeria capital market is relatively new and has many factors influencing it. The capital market is for sourcing of long term loans, while the floating of government bonds will likely stimulate the capital market in its size and activities. Thus, the study investigated the effect of government bonds on capital market performance in Nigeria within the period of (1990 – 2016). The method of analysis used in testing the hypothesis was the Ordinary Least Square (OLS) technique. The study among other things reported that, Federal government of Nigeria bonds has a significant impact on capital market performance in Nigeria, Federal government value of trade bonds has a significant impact on capital market performance in Nigeria and Federal government total new issue has a significant impact on capital market performance in Nigeria. Based on the findings, the study recommended that: The government should continue to acquire funds majorly through FGN bonds. As shown in the result, FGN bonds have a significant positive impact on capital market performance in Nigeria. To continue boosting the value of trade in the Nigerian capital market, there is need for availability of more investment instruments such as derivatives, convertibles, future and swaps options in the market. Total new issues are very important to the growth of any capital market. Therefore, government should continue to employ appropriate trade policies such as establishing National Association of Securities Dealers (NASD) that promote the inflow of international capital and foreign investment, so as to enhance the production capacity of the nation. 

TABLE OF CONTENTS

Cover page i

Title page ii

Declaration iii

Certification iv

Dedication v

Acknowledgement vi

Table of Contents vii

List of Tables ix

Abstract x

CHAPTER ONE: INTRODUCTION 1

1.1 Background of the study 1

1.2 Statement of Problem 2

1.3 Objectives of the study 3

1.4 Research Questions 3

1.5 Research Hypotheses 3

1.6 Scope and limitation of the study 4

1.7 Significance of the study 4

1.8 Definition of terms                                                                                                           5

CHAPTER TWO: REVIEW OF RELATED LITERATURE 6

2.1 Conceptual Framework 6

2.1.1 The concept of capital market  6

2.1.2 Roles of the Nigerian capital market 7

2.1.3 Capital market and economic growth channels of linkage 8

2.1.4 Definition of Bonds and the Bonds Market 10

2.1.5 Overview of the Nigerian Bonds Market  12

2.2 Theoretical Framework 12

2.2.1 The Nigerian stock market in perspective 14

2.2.2 Nigerian stock exchange specific reforms 17

2.3 Empirical Literature Review 19

CHAPTER THREE: RESEARCH METHODOLOGY 25

3.1 Research design 25

3.2 Area of Study 25

3.3Sources of data collection 25

3.4 Description of Variables 25

3.5 Model Specification 26

3.6 Techniques of Analysis 27

3.6.1 T- Statistics 27

3.6.2 F- Statistics 27

3.6.3 R- Squared 28

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION 29

OF FINDINGS

4.1 Introduction: 29

4.2 Descriptive analysis  30    

4.3 Analysis, Discussion of Findings and Hypotheses Testing 31 

4.3.1 Test of Hypothesis 32

4.4 Discussion of Result 34

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1 Introduction 35

5.2: Summary of Findings 35

5.3 Conclusion 36

5.4 Recommendations 36

References 37

Appendix 

LIST OF TABLES

Table1: Data Presentation 29

Table 2: Descriptive Statistics 30

Table 3: Presentation of Ordinary Least Square Regression (OLS) Result. 31