THE IMPACT OF CAPITAL MARKET ON THE PERFORMANCE OF THE AGRICULTURAL SECTOR IN NIGERIA

This study examined the impact of the capital market on the performance of the agricultural sector. Specifically, this study will establish the extent to which market capitalization influences the performance of the agricultural sector of Nigeria; determine the degree to which value of transaction influences the performance of the agricultural sector of Nigeria; and find out the extent to which share index influences the performance of the agricultural sector of Nigeria. The data were obtained from Central Bank of Nigeria Statistical Bulletin for the period 2011 to 2021. The Ordinary Least Square (OLS) approach that is suitable for data with regression equation predicting the linear relationship between the capital market variables and agricultural sector output which is the dependent variable The empirical analyses revealed that market capitalization had a positive effect on Agricultural sector output, share index value of transaction had negative effect on agricultural sector output in Nigeria. While value of transaction add negative effect on agricultural sector in Nigeria. It was concluded that capital market is a strong predictor of the performance agricultural sector in Nigeria. The study recommends that Government should put in place policy that would make capital market efficiency operate efficiently in other to attract more investors to the market so as to boost market capitalization, and extension, the overall growth of the Nigerian agricultural sector.