ABSTRACT
One of the major economic objectives of every nation is to
maintain a sustained increase in economic development, through
a continuous rise of the economic indicators like the Gross
Domestic product (GDP) and capital formation. For this to be
achieved, industries must be built and adequately maintained.
However, industrialization requires huge amount of fund which
can be available through the pooling together of numerous savers
fund. The Capital Market is the medium through which this fund
can be sourced. In the light of the above, the study aimed at
evaluating the role of the Nigerian Capital Market on the
industrialization of the economy. However, the objectives of the
study include; examining the extent which the capital market has
boosted industrialization in Nigeria; how capital market has
enhanced capital formation; ascertain the rate of growth in capital
market development; and to proffer recommendations. The study
covered a period of seven years. Being an Expo Factor research
design, Regression Analysis was used to test the hypotheses using
the following variables; Gross Domestic Product (GDP), Industrial
loan from the capital market, manufacturing sector Capital
Utilization Rates .
It was found out that the capital market had no
significant positive impact on industrial development. On the other
hand, it was found out that the capital market enhanced capital
formation within this period. However, this was a matter of chance
from the model, in that, the capital market cannot enhanced
capital formation if it capital market had no significant positive
impact on industrial development.
