Impact of Industrial development on Nigeria stock market.
The potentials of capital market in Nigeria as a catalyst to economic and industrial development cannot be over emphasized. The capital market as an internal part of a country’s financial system operates at the long end of the system to mobilize resources for long term development and growth. Basically, the capital market accelerates growth by providing ,relatively long term capital - debt and equity finance – for government and corporate sector. Several factors are said to contribute towards economic and industrial development of a country. These factors includes the availability of human (skilled and unskilled labor and material, land ,capital and technology) resources government policy,socio-cultural environment among others. Undoubtedly of all the factors that directly affect economic and industrial development is the existence of an effective capital market which is considered most paramount. This can be attributed to the inter-mediation role played by the capital market by providing the structure for the channeling of funds from the “surplus” unit of the economic – household and other institutional savings – to the “deficit” units,that is the manufacturing sector and other corporate sector for the purpose of accelerated industrial development growth. 1.According to Goodie (2000), “Nigeria has great investment potentials “.The country is richly blessed with natural resources,including a vast 2. reserve of petroleum resources and solid materials. With a population of over 120 million and 33% in urban areas,Nigeria is the most populous country in Africa .From an investment point of view, Nigeria offers a large and exciting market and by share and size of total potentials by now ought to be seen as the most prosperous nation in terms of economic growth and development which will ultimately be seen in the promotion of industrial and national well-being and prosperity. Despite the emergence...
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