Capital Market as a Tool for Mobilizing Capital Investment in Nigeria

Abstract

Capital market is an important source for mobilizing idle savings from the economy. It mobilizes funds from people for further investment in the productive channels of an economy. The market raises resources for longer periods of time. Thus provides a pool of Investment avenue for discerning entities, government inclusive, hence the importance of the importance of this study. The study seeks to appreciate the capital market as a tool for the mobilization of investment in Nigeria from 1988-2017. Data was collected from CBN statistical bulletin while the regression method of analysis was applied. Findings revealed that R2 =97.27% relationship exist between capital expenditure and all share index, value of new issues and value of transaction while R2 = 91.03% relationship exist between capital expenditure and market capitalization, value of new issues and value of transaction. Based on the findings, the study recommends that the capital market be more transparent in its dealings to encourage more investors. It also urged that government appraise her investments properly and monitor the execution to ensure that capital investment result in desired returns. The Nigerian capital market authorities need to do more in enlightening the public on how to access their already existing shares and new investors to know the various securities they can subscribe to in Government securities.