The Impact of Stock Market Performance on The Growth of Nigeria's Manufacturing Sector From 1981 To 2022

This study investigates the impact of stock market performance on the growth of Nigeria's manufacturing sector from 1981 to 2022. Data was sourced from secondary sources, including the Central Bank of Nigeria's statistical bulletin and the World Bank database. The study applied unit root tests, Johansen cointegration tests, vector error correction (VECM), and vector autoregressive (VAR) models. The unit root test indicated that all variables were non-stationary at the level but became stationary after first differencing. The long-run results revealed that market capitalization (MKC), value of shares traded (VST), and all share index (ASI) were insignificant, while number of deals (NOD), gross domestic product (GDP), and exchange rate (EXR) were significant at the 5% level. In the long run, NOD, GDP, and EXR positively influenced manufacturing output growth (MOG), while MKC, VST, and GDP had a negative impact. In the short run, MOG, MKC, GDP, and EXR had positive effects on MOG, while VST, ASI, and NOD showed negative relationships. The study recommends that the Stock Market Authority (SMA) focus on deepening the stock market by encouraging private companies to join, easing market entry barriers, and attracting foreign investors, especially given the political and economic stability in the country.