Nigeria’s Macroeconomic Landscape and Stock Market Efficiency

The investigated Nigeria’s macroeconomic landscape and stock market efficiency between 1995 and 2023. Annual time series “data on All Share Index (ASI), exchange rate interest rate, Gross Domestic Product and inflation rate were obtained from the Central Bank of Nigerian statistical bulletin (several issues). The data were analysed using the ARDL model and the findings revealed that interest rate and GDP had positive and significant impact on the efficiency of the Nigerian stock market, while inflation rate and Naira/Dollar exchange rate had negative but significant impact of the efficiency of the Nigerian stock market. The study concludes that interest rate, inflation rate, GDP and exchange rate are all essential variables in influencing or predicting the performance of the Nigerian Stock exchange market. Therefore, it is recommended amongst others that policymakers should maintain a balance between fostering investment and controlling inflation. The Central Bank of Nigeria (CBN) should implement flexible interest rate policies that encourage both domestic and foreign investment in the stock market while ensuring sustainable economic growth.” Keywords: Macroeconomic landscape, stock market efficiency, All Share Index