The Nigerian Stock Market and Its Impact on the Economy

CHAPTER ONE OVERVIEW Nigeria, like many other African countries, was created from a multi-ethnic, socially and culturally diverse people, situated between the Equator and the tropic of cancer, its climate and vegetation can afford the growth of many tropical commodities such as cocoa, groundnuts, palm produce and rubber. Starting from a low technological base after political independence in 1960, the country embarked on the arduous task of building a state with one identity by integrating the different ethnicities and transforming the barter economy into financial exchange economy. The country provided infrastructure and social amenities for a very young population. Over the years, policies were pursued in order to achieve the goal of a†¦show more content†¦Fakiyesi, O.M. in his paper also said that the poor in Nigeria have limited access to savings and credit facilities, good roads, pipe borne water, innovative technology and low output markets. They are predominantly in subsistence agricult ure and in petty trading, utilising traditional input. This is why the role of the capital market as agent of growth and development is very important, thus this role has been subject of concern and has drawn comments from different fora. It is under this background this study was proposed, to further clarify the symbiotic relationship between the capital market and economic development. STATEMENT OF THE PROBLEM Economic advancement and allocation of the aggregate investment in an economy for production of goods and services are too prominent factors in our national development. The importance of capital market can be ascertained from the increasing emphasis and recognition accorded to investment as veritable instruments of development by policy makers in Nigeria and the world over. Capital mobilisation and allocation are very essential if the regular features of poor infrastructural facilities (i.e. bad roads/poor road networks, lack of electricity, water, indecent accommodation, inadequate educational institutions, lack of health centres and poorShow MoreRelatedCurrent Issues On Capital Market Essay724 Words   |  3 PagesCURRENT ISSUES ON CAPITAL MARKET The Capital market all over the globe experienced crisis which started in United States of America in 2007 following the collapse of subprime mortgage. The bankruptcy of Lehman Brothers in September 2008, which led to the collapse of the US capital market that later trickled to other part of the world with large organization asking for bailout and also economies requesting for same from other economies or regional unions. The Nigerian Capital market was not exempted inRead MoreImpact of Industrial Development on Nigeria Stock Market1457 Words   |  6 PagesImpact of Industrial development on Nigeria stock market. 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