IMPACT OF NIGERIA EXCHANGE GROUP ON ECONOMIC GROWTH IN NIGERIA 2008-2020

Abstract

This study examined the impact of the Nigerian Exchange Group (NGX) on economic growth in Nigeria from 2008 to 2020. The objectives were to determine the effect of the All-Share Index (ASI), Market Capitalization (MC), and Number of Deals (NOD) on Nigeria’s Gross Domestic Product (GDP), used as a proxy for economic growth. Secondary data were sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin and other relevant publications. The study adopted an ex post facto research design and employed the Ordinary Least Squares (OLS) multiple regression technique for data analysis. The findings revealed that the All-Share Index had a positive but statistically insignificant impact on GDP. Market Capitalization exhibited a positive and statistically significant relationship with GDP, indicating that increases in market capitalization contributed significantly to economic growth during the study period. The Number of Deals showed a negative but statistically insignificant effect on GDP. The overall model was statistically significant and explained approxily 90 percent of the variations in economic growth. The study concludes that the Nigerian stock market contributes to economic growth primarily through market capitalization, while the effects of the All-Share Index and Number of Deals remain limited. Based on the findings, the study recommends that government should formulate policies that attract both local and foreign investments into the capital market, strengthen collaboration between the Securities and Exchange Commission (SEC) and relevant stakeholders, improve market efficiency, and ensure strict compliance with market regulations to enhance investor confidence and promote sustainable economic growth.