An Evaluation of the Nigerian Capital Market and Economic Development from 2015 to 2023

Capital markets serve as vital channels for mobilising long-term funds and directing them toward productive economic activities, thereby serving as a barometer for investment confidence and development financing. This study evaluates the performance of the Nigerian capital market and its contribution to economic development between 2015 and 2023, a period marked by currency devaluation, oil price shocks, regulatory reforms, and post-pandemic recovery. Secondary data are obtained from the Nigerian Exchange Group, the Securities and Exchange Commission, and the Central Bank of Nigeria Statistical Bulletin. The study analyses market capitalisation, all-share index movement, volume of transactions, and initial public offering activity as capital market performance indicators, and uses regression analysis to test their relationship with real gross domestic product and gross fixed capital formation. The research draws on financial development theory and the endogenous growth model to explain the theoretical linkage between financial markets and productive output. The study contextualises its analysis within the Nigerian Exchange Group's demutualization in 2021 and the introduction of the Growth Board for small and medium enterprises. Findings from reviewed literature suggest that the Nigerian capital market remains shallow and illiquid relative to its potential, with retail investor participation constrained by low financial literacy and macroeconomic uncertainty. This study contributes original empirical analysis of market performance across a critical eight-year arc, with implications for the Securities and Exchange Commission, capital market operators, and the Federal Ministry of Finance. Keywords: capital market, economic development, Nigerian Exchange Group, market capitalisation, financial development