Financial Reforms and the Nigerian Capital Market: 1986– 2010

Abstract

This paper examines the impact of financial reforms on the Nigerian Capital Market for the period 1986 – 2010.  This is against the backdrop of the important role the capital market plays in the economic growth and development of a nation.  The paper reviewed empirical secondary data from CBN and Stock Market publications. The impact of the financial reforms introduced since 1986 on capital market development was assessed using multiple regression, the Johansen co-integration technique and Error Correction Model (OCM) as well as the pair-wise Granger causality tests to ascertain the long-term relationship between financial reforms and capital market development. The result revealed that the financial reforms from 1986 upwards had an overall significant impact on the capital market development in Nigeria.

Keywords: Capital Market, Economic Growth, Financial Institutions, Financial Reforms, Stock Exchange.