THE ROLE OF CAPITAL MARKET IN ECONOMIC GROWTH IN NIGERIA (1981-2022)

RACT The study investigated the role of capital market in economic growth in Nigeria (1981-2022). The broad objective of the study is to investigated the role of capital market in economic growth in Nigeria. Data for the study were collected from the Central Bank Statistical Bulletin, National Bureau of Statics of various years and from the internet. The dependent variable is GDP and independent variables are Market Capitalization, All Share Index and Equity Stock. The ARDL model was employed. The result obtained indicated that although the variables were found to be integrated of order 1(1) and order 1(0), there is evidence of cointegration between Marcket capitalization, All Share and Equity stock because the calculated F-statistic value (12.85) is above the upper bound critical value (3.67) at 5% level of significance. The study recommends that Nigerian capital market has to be packaged in line with current global trends, the internationalization of the NSE will allow a flow of foreign investment in the economy and as a way to boost industrialization process and Government should restore confidence to the market through regulatory authorities which will enhance transparency and fair trading transaction in the stock exchange market.