Statistical Analysis of the Economic Impact of Stock Market On Nigeria Economy from 1988 To 2022

Abstract

This study investigates the impact of stock market operations and economic growth in Nigeria from 1988 to 2022. The primary aim was to determine the impact of key stock market indicators; All Share Index (ASI), Volume of Trade (VOT), and Market Capitalization (MKTC) on Nigeria's Gross Domestic Product (GDP). Utilizing annual time series data, the study employed descriptive statistics, correlation analysis, and multiple regression techniques. The findings reveal strong positive correlations between GDP and the stock market indicators, with ASI, VOT, and MKTC collectively accounting for 83.2% of the variations in GDP. Regression results indicate that each of these variables significantly influences economic growth. The study concludes that a well-functioning stock market is crucial for enhancing Nigeria's economic performance by fostering efficient capital allocation and investor confidence. It recommends strengthening market infrastructure, promoting transparency, and implementing public financial education programs to sustain economic growth.