The Impact of the New Issues Market on Agricultural Productivity in Nigeria

Abstract

The growth of the agricultural sector in Nigeria has remained a major problem in spite of policies put in place by government to provide the sector with varying windows of investible funds, a major one of which is the capital market. Listed firms in capital market have opportunities to raise fund for investment. Agricultural productivity can be enhanced if sufficient funds can be accessed through primary market window of the Nigeria capital market. It is against the forgoing that this study seeks to examine the impact of the new issues market on agricultural productivity in Nigeria from 1990 to 2009. The study adopted the two variable model and the results reveals that the new issue market had positive and significant impact on agricultural output productivity in Nigeria. The study thus recommends relaxation of stringent conditionalities observed in accessing fund from the capital market should be relaxed especially for agricultural firms. This will encourage firms to tap from the opportunities in the capital market to increase productivity and output.

Keywords: New issues market, Agricultural productivity, Nigerian Economy