EFFECT OF PENSION FUND INVESTMENT ON THE PERFORMANCE OF CAPITAL MARKET IN NIGERIA (2004 – 2023)
Abstract
ABSTRACT
This study checks how pension fund investment links with the Nigerian capital market. The main goal was to see how pension fund investment affects the performance of the market, looking closely at its role on the All Share Index (ASI), Market Capitalization (MCAP), and Total Value of Trade (TVT). Data were taken from secondary records covering 2004 to 2023 from the National Pension Commission (PenCom), Nigerian Exchange Group (NGX), Securities and Exchange Commission (SEC), and Central Bank of Nigeria (CBN). ASI, MCAP, and TVT served as dependent measures of market activity, while pension fund investment (PFI) was the key independent variable. The study applied an ex post facto approach. Ordinary Least Squares (OLS) regression was used to find the way PFI connects with the market indicators. The outcome showed that pension fund investment had a positive and meaningful effect on all three market measures. In detail, PFI raised ASI, expanded MCAP, and lifted TVT during the study years. The result is that pension fund investment supports market growth, steadiness, and smooth trading. Policy steps are proposed to widen pension fund spread, strengthen investment checks, and improve the role of major institutions in Nigeria’s capital market.
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