Saudi Journal of Business and Management Studies (SJBMS)
Volume-3 | Issue-09 | 1018-1024
Review Article
The Effect of the Nigeria Stock Market on Infrastructure Development in Nigeria
Ebere Chukwuma Christopher, Thankgod Obutor
Published : Sept. 30, 2018
Abstract
This paper investigated the influence of stock market activities in on the
provision of infrastructure in Nigeria. In order to achieve the objectives of the study,
data bordering on the activities of the stock market viz all share index, market
capitalization and value of transactions and infrastructure development viz; gross fixed
capital formation were collected from the CBN statistical bulletin and analysed using
multiple regression analyses. The findings of the research showed that; there is a
negative but significant relationship between all share index and gross fixed capital
formation. There is positive and significant relationship between market capitalization
and gross fixed capital formation. Finally, there is a negative non-significant
relationship between value of transaction and gross fixed capital formation. Based on
the findings, we conclude that the contribution of the Nigeria Stock market in
infrastructure development is below expectation. It is therefore recommended that
more development oriented securities be introduced into the Nigeria Stock market to
help boost investment in infrastructure. More funds from institutional investors should
be channeled into investment in long-term government securities to provide funding for
infrastructure investments. Finally, we recommend that the activities in the Nigeria
Stock market be deepened in order to foster stability in trading activities.