The increase in number of fraud
Nigeria and around
the world emphasized the
need for forensic accounting.
The aim of this paper is to
find out if rules and procedures are properly
followed in the public sector transactions, to examine if there is adequate
internal control system in the public sector, to ascertain the need for
forensic accounting services in the public sector for fraud and corruption
issue as well as to verify if the accountant in the public sector have adequate
forensic training for fraud and corruption issue. Questionnaire was distributed to
elicit information from 50 respondents. The data collected were analyze using
chi-square statistical tool. The results ofmy findings are that fraud and corruption
are fundamental problems in the Nigeria public sector and is hampering
efficiency in the sector, and that rules and procedures are not properly
followed, it was also discovered that forensic accounting will help reduced
corruption. I then recommend the introduction of forensic accountingand training of accountant to acquire the
skill of forensic accounting and utilization of their services in public sector
and also thatour legal framework should be implemented
in line with management principle of “carrot and stick” whereby those who bend
rules and procedures are made to face the full wrath of the law to act as
deterrence for others.
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
1.1Background to the Study
1.2Statement of the Problem
1.4Scope of the Study
1.6Significance of Study
1.7Limitations of the Study
1.8Definition of Terms
CHAPTER TWO: LITERATURE REVIEW
2.2Overview of the Nigerian Capital Market
2.2.1 Origin of the Stock Exchange
2.2.2 Origin of the Nigerian Capital Market
2.2.3Operations Of The Nigerian Capital Market
2.2.4Participants in the Nigerian Capital Market
2.3The Roles of the Nigerian Capital Market
2.4Review of the Performance of the Nigerian
2.5The Contributions of the Capital Market to
Economic Growth In Nigeria
2.6Problems of Capital Market Development In Nigeria
2.7Recent Developments towards an Effective Stock
Market in Nigeria
2.8International Comparison of the Nigerian Stock
2.9Prospects of the Nigerian Capital Market
2.10Approach of Raising Fund in the Capital Market
CHAPTER THREE: RESEARCH METHODOLOGY
3.3Method of Data Collection and Sources
3.4The Population of the Study
3.5The Sample Size
3.6Method of Data Analysis
CHAPTER FOUR: PRESENTATION OF REGRESSION
4.2Policy Implication of Empirical Findings
CHAPTER FIVE: SUMMARY, CONCLUSION AND
5.1 Summary of Findings
1.1BACKGROUND TO THE STUDY
The capital market has been identified as an institution that
contributes to the socio-economic growth and development of emerging and
developed economies. This is made possible through some of the vital roles
played such as channeling resources, promoting reforms to modernize the
financial sectors, financial intermediation capacity to link deficit to the
surplus sector of the economy, and a veritable tool in the mobilization and
allocation of savings among competitive uses which are critical to the growth
and efficiency of the economy (Alile 1984).
It helps to channel capital or long-term resources to firms with
relatively high and increasing productivity thus enhancing economic expansion
and growth (Alile 1997). Ekundayo (2002) argues that a nation requires a lot of
local and foreign investments to attain sustainable economic growth and
development. The capital market provides a means through which this is made
possible. However, the paucity of long-term capital has posed the greatest
predicament to economic development in most African countries including Nigeria.
Osaze (2000) sees the capital market as the driver of any
economy to growth and development because it is essential for the long-term
growth capital formation. It is crucial in the mobilization of savings and
channeling of such savings to profitable self-liquidating investment.
The Nigerian capital market provides the necessary lubricant
that keeps turning the wheel of the economy. It not only provides the funds
required for investment but also efficiently allocates these funds to projects
of best returns to fund owners. This allocative function is critical in
determining the overall growth of the economy. The functioning of the capital
market affects liquidity, acquisition of information about firms, risk
diversification, savings mobilization and corporate control (Anyanwu 1998).
Therefore, by altering the quality of these services, the functioning of stock
markets can alter the rate of economic growth (Equakun 2005). Okereke-Onyiuke
(2000) posits that the cheap source of funds from the capital market remain a
critical element in the sustainable development of the economy. She enumerated
the advantages of capital market financing to include no short repayment period
as funds are held for medium and long term period or in perpetuity, funds to
state and local government without pressures and ample time to repay loans.
In 1986 Nigeria embraced the International Monetary Fund
(IMF)-World Bank Structural Adjustment Programme (SAP) which influenced the
economic policies of the Nigerian government and led to reforms in the late
1980s and early 1990s.The programme was proposed as an economic package to
rapidly and effectively transformed the Nigerian economy within two years
(Yesufu 1996). However, until SAP was abandoned in 1994, the objectives were
not achieved due to the inability of government to judiciously implement some
of its policy measures Oyefusi and Mogbolu 2003). The notable reforms include
monetary and fiscal policies, sectoral reforms such as removal of oil subsidy
in 1988 to the tune of 80%,interest deregulation from August 1987, financial
market reform and public sector reforms which entails the full or partial
privatization and commercialization of about 111 public owned enterprises. The
Nigerian Stock Exchange was to play a key role during the offer for sale of the
shares of the affected enterprises (World Bank 1994; Anyanwu 1993; Anyanwu et
al. 1997; Oyefusi and Mogbolu 2003).
The introduction of SAP in Nigeria has resulted in a very
significant growth of the country’s stock market as a result of deregulation of
the financial sector and the privatization exercise which exposed investors and
companies to the significance of the stock market (Alile1996;Soyode 1990).
Ariyo and Adelegan (2005) contend that the liberalization of capital market led
to the growth of the Nigerian capital market yet its impact at the macro-economy
was negligible. Again the capital market was instrumental to the initial 25
banks that were able to meet the minimum capital requirement of N25billion during the banking sector
consolidation in 2005.The stock market has helped government and corporate
entities to raise long-term capital for financing new projects, and expanding
and modernizing industrial/commercial concerns (Nwankwo 1991).
Given the roles the capital market has played during the
privatization of public owned enterprises, recent recapitalization of the
banking sector and avenue of long term funds to various government and
corporations in Nigeria.
The major focus of this research is to empirically assess with the
contribution of capital market to economic growth in Nigeria.
1.2STATEMENT OF THE PROBLEM
The capital market is one of the main avenues investors invest
their hard earned currency in anticipation of good returns or yield. But since
the inception of the global economic crunch in addition to a number of causing
factors the impact of the capital market has remained rather docile. The
federal government effort at revamping it has still not yielded enough result.
In the light of this, the following statement of research
questions are being raised.
1.Does the capital market enhance the growth of
the Nigerian economy?
2.Does the capital market enhance and promote
investment in Nigerian economy?
3.Does the capital market help to increase value
of transactions (government and industrial securities)?
This research work seeks to achieve the following objectives.
1.To ascertain whether the capital market enhance
the growth of the Nigerian economy.
2.To critically examine whether capital market enhance
and promote investment in Nigerian economy.
3.To verify whether the capital market help to
increase value of transactions (government and industrial securities).
1.4SCOPE OF THE STUDY
This study is undertaken to evaluate the impact of Nigerian
Capital Market as an Instrument in mobilization of investment capital. As such,
this study is restricted to all companies quoted on the floor of the Nigerian
Stock Exchange market. Temporally or in term of time series, a period of twenty
seven years is used i.e. 1981 to 2008 using some market indicators as means of
assessing the impact of the capital market in mobilizing investment in Nigeria.
It is hoped that this will help to achieve the stated objective of the study.
The following hypothesis will be tested
The capital market does not enhance the growth of the Nigerian economy
The capital market still enhance the growth of the Nigerian economy
The capital market does not enhance and promote investment on the Nigerian
The capital market still enhances and promotes investment on the Nigerian
Capital market does not help to increase value of transactions (government and
industrial securities) in Nigeria.
Capital market helps to increase value of transactions (government and
industrial securities) in Nigeria.
1.6SIGNIFICANCE OF STUDY
This research work on its conclusion, together with whatever
solution or findings that may arise, will prove useful to some particular group
of persons or otherwise for various reasons in accordance with their varying
-Stakeholders: This study will be important and beneficial to
stakeholders of an organization to know the role of the Nigerian capital market
in mobilizing investment in Nigeria economy.
Government: It will
acquaint the government of the importance of Nigerian Capital Market and how it
should be properly managed.
-The public: This study will help to restore the lost
confidence of the public as regard the Nigerian capital market and investment
mobilization in Nigeria economy.
academic and other future researchers in this similar subject matter will find
it a useful source of learning and research.
TERMS AND CONDITIONS APPLY
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