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The Impact Of Indutrialization On Nigeria Economic Development
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1.2 Statement of the Problem
There is abundant evidence that more
Nigeria business lack long term capita. The business sector has mainly
dependent on short term capital likes, overdraft to finance businesses
that require long term capital based on the maturity matching concept
such financing is risky. All such firms require appropriate mix of short
and long term capital (Demirguckunt and Levine 1996).
Most recent
literature on Nigerian capital market have recognized the tremendous
performance, the market has recorded in recent times. However, vital
role of the capital market in economic growth and development has not
been empirically investigated thereby creating a research gap in this
area. This study is undertaken to examine the contribution of the
capital market in Nigeria economic and development.
Aside the social
institutional factor inhibiting the process of economic development in
Nigeria, the bottleneck created by the dearth of finance to the economy
constitutes a major setback to its development.
At the Nigeria Stock
Exchange (NSE) buyers and seller are the same people so the market is no
more than a manipulative institution, where corruption and lack of
transparency has brought misery to investors. Or how could one describe a
situation where market crashed in 2008 with capitalization collapsing
from fifteen million to six trillion without anybody lifting a finger?
(Etubong 2008). Because of this known deficiency, corruption has
permeated the system, there is price fixing and overvaluation of shares.
Initial public offers (IPOs) are manipulated. Most executive and
council members of the exchange stooped so low to collaborate with stock
brokers by leaking information thereby manipulating price of shares. As
a result, it is necessary to evaluate the Nigerian capital market
following these affirmation problems.
1.3 Objective of the Study
The
broad objective of this study is to examine the activities and
performance of the Nigerian capital market. The objective is to appraise
the role of the capital market to economic growth and economic
development of the Nigerian capital market.
The special objectives of this study are as follows:
1. To examine the operations of the capital market.
2. To evaluate the performance of the capital market in relation to the economic growth in Nigeria.
3. To examine the rate at which new stocks are issued on the capital market.
4. It is also of interest to appraise the rational for making the exchange a self regulatory organization.
5.
To improve recommendations as how the operations of the market could be
improved to boost economic growth and economic development of Nigeria.
1.4 Research Questions
To achieve the above objectives, the following research questions were raised:
1.
What the achievements and challenges of the Nigerian stock exchange in
developing the capital market and economic growth and development?
2. What is the performance of the capital market in relation to economic growth in Nigeria?
3. How is the operation of Nigeria capital market?
4. What is the rate at which new stocks are issued on the Nigerian market?
5. How could the capital market through its crucial role, stimulate economic growth in Nigeria?
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