Capital Market Performance And Economic Growth In Nigeria:- Njoku Matthew C

ABSTRACT H X f I-I I: IThe study investigated Capital Market Performance and Economic Growth in Nigeria. The objectives ofthis study include to evaluate the performance ofthe capital market in relation to the economic growth in Nigeria and to ascertain if there is a sustainable long-run relationship between capital market performance and economic growth in Nigeria. The study employed multiple regression techniques using Ordinary Least Square (OLS) regression method to determine the relationship between the dependent and independent variable. The period covered was thirty years rangingfrom 1986-2018 and the data used was gotten from secondary sources particularlyfrom Central Bank ofNigeria (CBN) Statistical Bulletins, Nigerian Stock Exchange (NSE) fact books, Security and Exchange Commission (SEC) Market Bulletins and relevant Journals. The research was based on the determinant ofperformance with the use of capital market indices in Nigerian economic growth. The study revealed that total market capitalization, grossfixed capitalformation and the control variable; total new issues were positively related to output growth in Nigeria, while total value oftraded share in the in the Nigerian capital market has a negative relationship with economic growth. The work concludes that there is no long run relationship between stock market performance and economic growth in Nigeria. Therefore, this study recommends the removal ofimpediment to stock market development which includes tax, legal and regulatory barriers, so as to create enabling environment where business can strive, creation ofenabling environment in order to increase the efficiency ofthe stock market, and to attain higher economic growth. Finally, government should encourage the development of the capital market since it has a positive relationship with economic growth.