FINANCIAL MARKETS’ OPERATIONS AND PERFORMANCE OF THE NIGERIAN CAPITAL MARKET
Obainoke Eromosele Felix 1, Wisdom Ezemndi Nwaguru 2 & Uyanna Prosper Chukwufumnanya 3
Department of Banking and Finance, National Institute of Construction Technology and Management (NICTM), Uromi, Edo State, Nigeria 1
University of Agriculture and Environmental Sciences, Umuagwo, Imo State, Nigeria 2
Department of Business Administration and Management at National Institute of Construction Technology and Management, Uromi, Edo State, Nigeria 3
Corresponding Email: eromon2002@gmail.com 1
Abstract
This study examined the effect of financial markets’ operations on the performance of the Nigeria capital market between 1990 and 2023; with emphasis on determining the extent to which operations of the variable income securities market, fixed income securities market, and money market have affected the market capitalization of the Nigeria capital market. Data on these variables were sourced from Central Bank of Nigeria (CBN), and Securities and Exchange Commission (SEC) statistical bulletins for various years. Engel-Granger cointegration, granger causality and ECM estimation techniques were employed for data analysis. Basically, results revealed that operations of the variable income securities market and money market have positive and significant effects on market capitalization; while operations of the fixed income securities market have a negative insignificant effect on market capitalization. Hence, financial markets’ operations have mixed effects on the performance of the Nigeria capital market. Hence, there is need to reposition these markets in Nigeria. For the variable income securities market, the number of listed securities should be increased and the market should be made more liquid; for the money market, there is need for enhanced publicity about the existence and operations of the market; and for the fixed income securities market, measures like better rates of return should be put in place to make the market more attractive.
Keywords: Financial Markets Operations, Capital Market, Variable Income Securities Market, Fixed Income Securities Market, Money Market.
