THE IMPACT OF THE STOCK MARKET ON ECONOMIC GROWTH IN NIGERIA

This study examined the impact of the Stock Market on Economic Growth in Nigeria, with a particularfocus on major economic parameters and indices as measurement of growth. The study highlighted theimpact of domestic participation in facilitating economic growth and development through the provisionof capital for listed companies for business purposes. Objectives of the study and its significance havebeen highlighted, and the testable hypotheses were all focused on the relationship between the NigerianStock market and the Nigerian economy. The study used ordinary least squares (OLS) to examine theimpact of the stock market on economic growth in Nigeria. The findings showed that domesticparticipation in the Nigerian stock exchange operations has a significant impact on economic growth inNigeria (P= 0.000 <0.05 In addition, there existed a long-run relationship between NSE operations andeconomic growth of Nigeria (F-stat, 8.135034 greater than the critical value of the upper bound at allthe levels of significance). The study concluded that the Stock market is a barometer for measuring theNigeria economic growth. The study recommended also that the government must steadfastly tackleinhibiting factors such as infrastructural inadequacy and weak institutional and regulatory frameworkencumbering the stock market from realizing its objective of capital mobilization for economic growth.