CAPITAL MARKET AND SUSTAINABLE DEVELOPMENT IN NIGERIAN

Abstract

Sustainable development is characterized as the development that meets the needs of the present
without compromising the ability of future generations to meet their own needs. The concept is
vital to investors because it has a significant implication to returns on investments as well as the
absolute values of long-term investment portfolios. Capital market on the other hand is a system
where debt and equity can be bought and sold. The equity market and the money market are the
two principal sources of external capital to the economy. It is perhaps obvious to say that the
capital market’s physical impact arises when it finances or neglects to finance the development of
real goods and services. However, capital market is critical to the sustainable development of any
nation. The objective of this study is set to examine the relationship between the Nigerian capital
market and sustainable development during the period 1988-2018. Correlation research design
was employed using a time-series secondary data; multiple regression technique of data analysis
was applied. The study found a significant positive relationship between the Nigerian capital
market performance and the sustainable development (proxy by Real GDP). Both the capital
market capitalization and the value of transaction were found to be statistically and positively
impacted on the sustainable development in Nigeria during the period under review. The study
recommends that regulators (SEC) should make increase policy measures and regulations to
ensure enabling environment to facilitate increased investments in the capital market and the need
to enhance investor confidence.