AN EVALUATION OF THE PERFORMANCE OF NIGERIA STOCK EXCHANGE IN THE ECONOMIC DEVELOPMENT OF NIGERIA
Abstract
ABSTRACT
This study evaluates the performance of the Nigeria Stock Exchange (NSE) and its impact on sustainable economic growth in Nigeria, focusing on key variables such as liquidity, value of trade, and market capitalization. Utilizing a descriptive research design and secondary data from 2020 to 2024, the analysis employs regression techniques to establish relationships between these variables and Gross Domestic Product (GDP) growth. The findings reveal significant positive correlations, indicating that improved liquidity, increased trading activity, and higher market capitalization contribute to economic development in Nigeria. Moreover, the research identifies several challenges facing the NSE, including market volatility, low investor participation, and inadequate regulatory frameworks. These factors hinder the stock exchange's potential to facilitate capital mobilization and resource allocation effectively. Recommendations for enhancing the NSE's performance include implementing regulatory reforms, promoting financial literacy among investors, and fostering a more robust trading environment to attract both domestic and foreign investments. Ultimately, this study underscores the critical role of a well-functioning stock market in driving sustainable economic growth in Nigeria. By addressing existing challenges and leveraging the strengths of the NSE, stakeholders can harness the stock market's potential to contribute significantly to the nation's economic development goals.
Keywords: Nigeria Stock Exchange, Economic Growth, Liquidity, Value of Trade, Market Capitalization, Sustainable Development
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