The analysis of the impact of capital market operation on industrial growth in Nigeria

This study examined the effects of capital market operation on industrial growth in Nigeria from 1981 to 2015. Secondary data were sourced from Central Bank of Nigeria (CBN) Statistical Bulletins from 1981 to 2015. Multiple regressions analysis and Pearson product moment correlation were employed to examine the relationship, and the effect of independent variables (market capitalization, Market volume, exchange rate, and All-Share index) and dependent variable (INDGRT). Findings reveals that there is a positive effect of Market capitalization on industrial growth, and economic growth (β =.0762594;.3638583; p. 0.05) in Nigeria. All share index (ASI) has negative significant effect on industrial growth (β = -.0197857; p ≤ 0.05) and economic growth (β = -.2413219; p. 0.05) in Nigeria. Also, exchange rate (EXCHNG) has negative significant effect on industrial growth (β =--.124867; p ≤ 0.05). It is concluded that there is a positive significant impact of capital market on industrial and economic growth in Nigeria. Exchange rate has negative effect on industrial growth in Nigeria. It is now recommended that government should find all means to reduce exchange rate in Nigeria so that the cost of raw materials imported by industrial sector is reduced so that it will ultimately enhance their performance. Government should also increase the liquidity of capital market in order to quench the financial thirst of the industrial sector in Nigeria.