Select Currency
Translate this page

IMPACT OF INDUSTRIALIZATION ON NIGERIA ECONOMIC DEVELOPMENT

Format: MS WORD  |  Chapter: 1-5  |  Pages: 77  |  1631 Users found this project useful  |  Price NGN3,000

  DOWNLOAD THE FULL PROJECT

IMPACT OF INDUTRIALIZATION ON NIGERIA ECONOMIC DEVELOPMENT

 

CHAPTER ONE

INTRODUCTION 

1.1     Background of the Study

The financial system in any modern economy consists basically of two markets via: the money market and the capital market. The money market provides short term finances for project execution, while the capital market performs all the long-term functions of buying, selling and borrowing of long-term funds. The capital market is a highly specialized and organized financial market and indeed essential agent of economic growth because of its ability to facilitate and mobilize saving and investment. To a great extent, the positive relationship between capital accumulation and economic growth has long been affirmed in economic theories (Anganwu 1993).

Success in capital accumulation and mobilization for development varies among nations, but is largely dependent on domestic savings and inflows of foreign capital therefore, to arrest the menace of the current economic downturn, effort must be geared towards effective resources mobilization. It is in realization of this, consideration is given to the measure for the development of capital market as an institution for the mobilization of finance from the surplus sector to the deficit sector. The development in the capital market in Nigeria, as in other developing countries has been induced by the government though prior to establishment of stock.

Market in Nigeria, there existed some less formal market arrangement for the operation of capital market. It was not prominent until the visit of Mr. J.B. Lobynesion in 1959, on the invitation of the federal government to advice on the role. Central bank could play in the development of local money and capital market. As a follow up to this, the government commissioned and set up makes recommendation on the ways and means of establishing a stock market in Nigeria as a formal capital market. Acting on the recommendation Lagos stock exchange was established on March 1960, it was incorporated under section 2 cap 37 in September 1961.

With the establishment of central bank of Nigeria in 1959 and establishment of Lagos stock exchange in 1961 the Nigeria stock exchange was established in 1979 by an act in 1979. A review was carried out to take care of the low capital formation, the huge amount of currency in circulation which has held outside the banking system, the unsatisfactory demarcation between commercial banks and emerging merchant banks, and the extremely shallow depth of the capital. Response to the problem mentioned above the government decentralized the stock exchange on the 2nd of December 1977 the memorandum and article of association of the Lagos stock exchange, with branches in Lagos, Kaduna, Port-Harcourt, Yola and now in the Federal capital territories and some other cities.

1.2     Statement of the Problem

There is abundant evidence that more Nigeria business lack long term capita. The business sector has mainly dependent on short term capital likes, overdraft to finance businesses that require long term capital based on the maturity matching concept such financing is risky. All such firms require appropriate mix of short and long term capital (Demirguckunt and Levine 1996).

Most recent literature on Nigerian capital market have recognized the tremendous performance, the market has recorded in recent times. However, vital role of the capital market in economic growth and development has not been empirically investigated thereby creating a research gap in this area. This study is undertaken to examine the contribution of the capital market in Nigeria economic and development.

Aside the social institutional factor inhibiting the process of economic development in Nigeria, the bottleneck created by the dearth of finance to the economy constitutes a major setback to its development. At the Nigeria Stock Exchange (NSE) buyers and seller are the same people so the market is no more than a manipulative institution, where corruption and lack of transparency has brought misery to investors. Or how could one describe a situation where market crashed in 2008 with capitalization collapsing from fifteen million to six trillion without anybody lifting a finger? (Etubong 2008). Because of this known deficiency, corruption has permeated the system, there is price fixing and overvaluation of shares. Initial public offers (IPOs) are manipulated. Most executive and council members of the exchange stooped so low to collaborate with stock brokers by leaking information thereby manipulating price of shares. As a result, it is necessary to evaluate the Nigerian capital market following these affirmation problems.

1.3     Objective of the Study

The broad objective of this study is to examine the activities and performance of the Nigerian capital market. The objective is to appraise the role of the capital market to economic growth and economic development of the Nigerian capital market. The special objectives of this study are as follows:

1.  To examine the operations of the capital market.

2.  To evaluate the performance of the capital market in relation to the economic growth in Nigeria.

3.  To examine the rate at which new stocks are issued on the capital market.

4.  It is also of interest to appraise the rational for making the exchange a self regulatory organization.

5.  To  improve recommendations as how the operations of the market could be improved to boost economic growth and economic development of Nigeria.

1.4     Research Questions

To achieve the above objectives, the following research questions were raised: 

1.  What the achievements and challenges of the Nigerian stock exchange in developing the capital market and economic growth and development?

2.  What is the performance of the capital market in relation to economic growth in Nigeria?

3.  How is the operation of Nigeria capital market?

4.  What is the rate at which new stocks are issued on the Nigerian market?

 

5.  How could the capital market through its crucial role, stimulate economic growth in Nigeria?

1.5    Research Hypothesis

H0:  Capital market operations have no impact on Nigerian economic growth

 

H1:  Capital market operations have impact on Nigerian economic growth.

H0:  There is no significant relationship between global economic meltdown and the crisis in the capital market.

H1:  There is significant relationship between global economic meltdown and the crisis in the capital market.

H0:  The crisis in the capital market has not affected the Nigerian economy in any way.

H1:  The crisis in the capital market has affected the Nigerian economy in any way.

1.6  The Scope of Study

The study covers the Nigerian capital market as a whole and the Nigerian Economy. This work does not cover all the facts that make up the financial sector but it is focused on the capital market and its activities as its impact on the Nigerian economic growth. The empirical investigation of the impact of the capital market on the economic growth in Nigeria was restricted to the period between 1987 and 2011 due to the non-availability of some important data.

The Nigerian Stock Exchange is taking holistically but with the Onitsha branch as a contact point. It covers all the information of relevant issues pertaining to the Nigerian capital market vis-à-vis the Nigerian economy. It also take into account the role of SEC in managing the crisis in the exchange and the role played by C.B.N. Ultimately, the study elicited investor’s response and positions as it regards the exchange in the capital market. To achieve this, investors in Enugu metropolis were elected.

In the case of the study, so many problems were encountered in which in one way or the order challenge the easy floe of this work these include:

a. Distance: In the course of the study, the research was faced which challenge of actually traveling to Nigerian stock exchange in Onitsha, C.B.N branch in Enugu, stock broking firm in Enugu and Anambra.

b. Time: there was not enough time to meet up the time available was managed effectively and efficiently. 

 

c. Finance: At a time, it was difficult and almost impossible to continue because of lack of finance.

d. Hoarding of information: some authority responsible for approving the release of information necessary for this study were not willing to approve the release of some of relevant information.

1.7     Significant of the Study

It is a noted fact that for any meaningful economic transformation of a country to take place, her capital market must be effectively active. It has also been an identified fact that economic strength of any nation is measured according to how active or effective her capital is in performing its supposed functions.  This study will be of significant interest to government and the central bank of Nigeria as they are aware of the problems facing the capital market and remedies to tackle the problems. The capital market plays important roles in economic growth so with the evaluation of the capital market, the efficiency of the capital evaluated and increased, hereby enhancing the rate of economic growth in Nigeria. The study will be significant to institutional operators of the market especially the Nigerian Securities and Exchange Commission and the future researchers who may want to share this experience.

This study will be of interest to investors who have been at the receiving and of the crisis in the in the exchange. They will be able to know the real cause of the problems, response of SEC and efforts being made to protect their investment. The significance of this study will provide foreign business with the facilities to offer their shores and give the Nigerian public an opportunity to invest and participate in the share and ownership or foreign business.

  DOWNLOAD THE FULL PROJECT

IMPACT OF INDUSTRIALIZATION ON NIGERIA ECONOMIC DEVELOPMENT

Not The Topic You Are Looking For?



For Quick Help Chat with Us Now!

+234 814 010 7220

+233 55 385 5526


HOW TO GET THE COMPLETE PROJECT ON IMPACT OF INDUSTRIALIZATION ON NIGERIA ECONOMIC DEVELOPMENT INSTANTLY

  • Click on the Download Button above.
  • Select any option to get the complete project immediately.
  • Chat with Our Instant Help Desk on +234 814 010 7220 for further assistance.
  • All projects on our website are well researched by professionals with high level of professionalism.

Here's what our amazing customers are saying

Gbadamosi Solomon Oluwabunmi
Lasu
Swift delivery within 9 minutes of payment. Thank you project master
Excellent
Uduak From Uniuyo
IProjectMaster is the best project site for students. Their works are unique and free of plagiarism!
Excellent
Merry From BSU
I am now a graduate because of iprojectmaster.com, God Bless you guys for me.
Excellent
Musa From Ahmadu Bello University
Thank you iprojectmaster for saving my life, please keep it up and may God continue to bless you people.
Excellent
Stancy M
Abia State University, Uturu
I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much iprojectmaster, infact, I owe my graduating well today to you guys...
Excellent
Ibrahim Muhammad Muhammad
Usmanu danfodiyo university, sokoto
It's a site that give researcher student's to gain access work,easier,affordable and understandable. I appreciate the iproject master teams for making my project work fast and available .I will surely,recommend this site to my friends.thanks a lot..!
Excellent
Emmanuel Essential
Kogi state University
I actually took the risk,you know first time stuff But i was suprised i received as requested. I love you guys 🌟 🌟 🌟 🌟
Very Good
Peace From Unilag
I cried not knowing how to go about my project but the day i searched online and saw iprojectmaster, i called and got my full project in less than 15minutes, i was shocked!
Excellent
MATTHEW NGBEDE
Ahmadu Bello University
I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!
Excellent
Joseph M. Yohanna
Thanks a lot, am really grateful and will surely tell my friends about your website.
Excellent

FREQUENTLY ASKED QUESTIONS

How do I get this complete project on IMPACT OF INDUSTRIALIZATION ON NIGERIA ECONOMIC DEVELOPMENT?

Simply click on the Download button above and follow the procedure stated.

I have a fresh topic that is not on your website. How do I go about it?

How fast can I get this complete project on IMPACT OF INDUSTRIALIZATION ON NIGERIA ECONOMIC DEVELOPMENT?

Within 15 minutes if you want this exact project topic without adjustment

Is it a complete research project or just materials?

It is a Complete Research Project i.e Chapters 1-5, Abstract, Table of Contents, Full References, Questionnaires / Secondary Data

What if I want to change the case study for IMPACT OF INDUSTRIALIZATION ON NIGERIA ECONOMIC DEVELOPMENT, What do i do?

Chat with Our Instant Help Desk Now: +234 814 010 7220 and you will be responded to immediately

How will I get my complete project?

Your Complete Project Material will be sent to your Email Address in Ms Word document format

Can I get my Complete Project through WhatsApp?

Yes! We can send your Complete Research Project to your WhatsApp Number

What if my Project Supervisor made some changes to a topic i picked from your website?

Call Our Instant Help Desk Now: +234 814 010 7220 and you will be responded to immediately

Do you assist students with Assignment and Project Proposal?

Yes! Call Our Instant Help Desk Now: +234 814 010 7220 and you will be responded to immediately

What if i do not have any project topic idea at all?

Smiles! We've Got You Covered. Chat with us on WhatsApp Now to Get Instant Help: +234 814 010 7220

How can i trust this site?

We are well aware of fraudulent activities that have been happening on the internet. It is regrettable, but hopefully declining. However, we wish to reinstate to our esteemed clients that we are genuine and duly registered with the Corporate Affairs Commission as "PRIMEDGE TECHNOLOGY". This site runs on Secure Sockets Layer (SSL), therefore all transactions on this site are HIGHLY secure and safe!