This term paper is written to help show the contributions of the
Nigeria capital market and it’s contribution to the economy. It is a term paper
that brings out the whole system of Nigeria capital market, it’s problem and
contribution to the economy it also provide the recommendations that are
supposed to be made to the capital market as a whole so as to effect it’s
growth and efficiency.
Its also talk about the review of related literature, the second tier
securities market, the financial market in economic development, the summary of
findings, its References.
This term paper in therefore n partial fulfillment of the requirement of the
Institute of management and Technology.
1.1 BACKGROUND OF THE STUDY
understand the Nigeria Economy there are two crucial document the Nigerian
Development plant and Annual budget, which in general the plan given a
ten years perspective of the economy five before and fire years. Hence
budget give two years perspective. One year before and up date the plan on an
Annual basis. Darning from the perspective, the think, objective and strategic
of the economy are established. The plan and budgets also specify the policy
thrust for Achiving the set objective broadly these are fiscal and monetary
policies. While fiscal policy involves measures or combination of measures in
government Revenues and expenditure monetary policy involves measures or
combinational of measures to influence or regulate the volume price of direction
of money and credit.
While the two instruments are analytically different they have a
common objective of influencing Aggregate economic activity to achieve the
overall economic objective of the nation.
market are markets in which under and investor provides long-term fund in
exchange for financial assets offered by borrowers or holders- it is also where
long- term financial assets are bought and sold and has and original maturity
of more than one year.
Capital market provide liquidly for financial assets, thus making
investors more willing to hold them.
Improvements in information, functioning and efficiency in capital
market approve liquidity and hence facitate the flow of fund into investments,
capital market activities, started prior to 1960. Infact two federal government
stock 3 1/4 percent first
development loan stock issued on 1940 and 1959 respectively the Lagos Exchange
did not commence operation until 1961 from the exchange had only 14 companies
up to 1971, but this situate has reversed in the period between 1971 and 1974
when the number reached 34 in order words, government fiat accounted for the
relatively rapid growth of exchange.
1.2 STATEMENT OF THE PROBLEM
increase in the security and exchange commission valuation activities one is
left to say that the Nigeria capital market is enhancing it’s performance there
by contributing to the growth of the economy. ( A total of 253 securities,
involving 1.734 billion shares valued at 2.033 billion were assessed by
securities and exchange commission in 1989 compared with 129 securities with
593.4 million in the proceeding years).
1.3 PURPOSE I OBJECTIVE OF THE STUDY
The main aim and objectives of this study involves
around the following:
1. To identify the contributions of the Nigerian
capital market in our Economy.
2. To explain what Nigerian capital market is all
3. To know the performance of the Nigerian capital
market toward growth of the economy.
4. To identify the problems of the N.C.N
5. To make suggestions for improved performance
1.4 SIGNIFICANCE OF THE STUDY
for long-term government securities is guide important because government
securities provide most of the ultimate liquidity that is important whenever
the possibility of substantial default or other obligation occurs. Other
government security instrument are income tax management Act of 1961 and
national provident fund Act of the former provides tax incentives of pensions
and provident fund which the later restrict investment and debenture listed on
TERMS AND CONDITIONS APPLY
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