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Impact of Capital Market Development on Economic Growth in Nigeria

Banking and Finance2025, Undergraduate

This study examined the impact of capital market development on economic growth in Nigeria. Time series data on market capitalisation, value of shares traded, and gross domestic product were analysed together with questionnaire responses from market operators. Data were analysed using regression and correlation techniques. The findings revealed that market capitalisation and trading activity significantly supported long-run economic growth through enhanced capital mobilisation and corporate investment. The study observed that low market depth and retail participation limited the market's contribution. It recommends market modernisation, investor confidence-building, and expansion of the issuer base.

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