Global Financial Crises And The Nigerian Capital Market Murtala Abdullahi Kwara

Research areas: Year: 2014
Type of Publication: Article Keywords: Financial Crisis and Capital Market
Authors:
  • Kwara, Murtala Abdullahi
Journal: Journal of Social Sciences and Public Affairs Volume: 4
Number: 1 Pages: 1-10
Month: June
Abstract:
The face of the growing global financial recession affected the Nigerian capital market as it experienced the worst set back in its history. The volume, transaction and the value of share dropped steeply. This caused trillion of naira losses to investors, share holders, lenders, borrowers and common people resulting in credit/liquidity crunch, crisis of consumers confidence and low output and employment in the economy. The situations have heightened worries of capital market collapse if urgent steps are not taken. The paper is aimed at empirically investigating the nexus between the current financial crises and the performance of Nigerian capital market. Using econometric approach, the paper deduced that a strong relationship existed between capital market performance indicators and total capitalization in Nigeria and concluded that, the market is responsible for long term growth capital formation and allocation to development uses efficiently. The following recommendations are hereby made in order to deepen the Nigerian capital market. Since capital market is a strong determinant of capital formation (investment) and growth, there is the need for both the private and public sectors to pursue economic and financial policy reform that will encourage investment in the market.