THE INFLUENCE OF CAPITAL MARKET OPERATIONS ON THE NIGERIA ECONOMIC GROWTH (1990-2017)

This study investigated the influence of capital market operations on the Nigeria economic growth, over the period of 1990 to 2017 and to carefully determine the causal relationship if any between Gross domestic product, Market capitalization, Volume of stock traded, value of stock traded, Turnover ratio and number of listed securities. This study made use of quantitative secondary data from the Nigeria Stock Exchange, National Bureau of Statistics and the Central Bank of Nigeria (CBN) statistical bulletin (2017). The study employed descriptive statistics, Ordinary least square techniques, the Augmented Dickey-Fuller (ADF) unit root test, co-integration test and error correction model (ECM) to determine the relationship among the dependent and independent variables. Empirical results from the study revealed the intercept appeared with a positive result of 794981.5. Market capitalization showed a positive relationship with a value of 3532.394. Volume of stock traded was 179115.0. Value of stock traded was 148028.0. Number of listed securities has a positive value of 361550.6. Turnover ratio was 10911929. This, in essence, means that the influence of the capital market on economic growth is strong and significant. Another major outcome of the study is that a unit increase in market capitalization, volume of stock traded, value of stock traded, number of listed securities and turnover ratio result in an increase in gross domestic product. The implication of this is that the economy responded favourably to measures taken to increase market capitalization, volume of stock traded, value of stock traded, number of listed securities and turnover ratio in Nigeria Stock Exchange. However, it is recommended, that the Security and Exchange Commission (SEC) should formulate good and workable policies that will revive and improve the Nigerian capital market so that it will have breadth and depth and to make the Nigeria capital market efficient.