DECLARATION

I hereby declare that the research work contained in this project was undertaken by

me and is original work under the supervision of Dr Ahmad B. El-Yaqub of the

Department of Economics, Faculty of Social Sciences, University of Abuja. All

materials used are fully referenced.

_________________ ________________
OGIDAN OPEYEMI OREOLUWA DATE
19/209ECN/133
 CERTIFICATION

This is to certify that this project, titled Impact of Capital Market on Nigeria's Economy, meets the
regulation governing the award of Bachelor of Science (B.Sc.) degree in the Economics
Department, University of Abuja, and it has been read and approved by the undersigned for its
contributions to knowledge and literary presentation.

_________________________ _____________

Dr Ahmad B. El-Yaqub Date

(Project Supervisor)

_________________________ __________________

Dr. Usman Gana Date

Head of Department

_________________________ _________________

Plagiarism Checker Date

_________________________ __________________

Prof. Sule Magaji Date

Dean, Faculty of Social Science

 ACKNOWLEDGEMENT

I would like to express my deepest gratitude to God for guiding me through the challenges and
obstacles I encountered during my academic journey and helping me complete it successfully.

I am also immensely grateful to my supervisor, Dr Ahmad B. El-Yaqub for his unwavering

guidance, support, and invaluable advice throughout my program. I am also grateful to my H.O.D,
Dr. Usman Gana, and all my lecturers in the Department of Economics, including Prof. Sarah
Anyanwu, Prof. Siyan Peter, Prof. Oyinlola Olaniyi, Prof. Michael Jimaza, Prof. S.A.J Obansa,
Prof. Gobna Wafure, Prof. Ben Obi, Prof. Sule Magaji, Prof. Muhammad Nuruddeen Isa, Dr.
David Okorafor, Dr. Hasan Emmanuel Dr. Masu Gombe, Dr. Sabiu Sani Barki, Dr. Ahmad B. El-
Yaqub, Dr. Chukwemeka Eke, Dr. Oladele Aluko, and Dr. Ibrahim Musa for their support and
mentorship.

I cannot overemphasize the immense contribution of my parents, Mr. and Mrs. Ogidan who are
deceased but I believed are watching over me throughout my research work. I also express my
sincere gratitude to my family Mummy Adigun, Mummy Moji my wonderful Big Mum and
Mummy Foluke with my siblings Brother Abiodun my Big Bro, Aunty Seun,Aunty Mary,Bro
Akin, for their constant support.

I also extend my appreciation to my friends Mayowa Aderoju, Samuel Olaniyan, Akibu Sunday,
Susan Ene, Gadosky and all my coursemates for their support and encouragement. May God bless
us all, and may our efforts never be in vain.
 ABSTRACT:

This study examines the impact of Capital Market on Nigeria's Economy using data on Real Gross
Domestic Product as a proxy for economic growth while capital market variables constitute the
independent variables. This includes Market Capitalization, All Share Index, Number of Listed
Securities and the number of listed companies The study adopted an expost-facto research design
which utilized secondary data for the period 1990-2022. While Augmented Dickey-Fuller unit root
test was used for preliminary analysis; an Autoregressive Distributed Lag (ARDL) was used for
the model estimation. A combination of ARDL bounds test for co-integration, ARDL short and
long run error correction models were used for estimation. All the tests helped to confirm the
integrity of our models. Findings of the study indicate that, the Number of listed Securities and All
Share Index maintained a significant relationship with economic growth in Nigeria both in the
short and long runs. Based on the findings of study it was recommended that government should
help to remove all impediments to stock market development in the form of tax, legal and
regulatory barriers as they act as disincentives to investments in the capital market. Again,
government should help to maintain policy consistency in the pursuit of growth in the Nigerian
capital market. By so doing, counter developmental policies should not be allowed to crowd out
the gains of capital market development and by extension on economic growth in the long run.
Lastly the government should find ways and means of boosting the confidence of investors to
retain their portfolio investments.