BibTex RIS Cite

RELATIVE CONTRIBUTIONS OF THE NIGERIAN CAPITAL MARKET TO THE GROWTH OF EXTERNAL RESERVES (2005-2014)

Year 2015, Volume: 7 Issue: 1, 57 - 83, 01.06.2015

Abstract

Virtually all aspects of human endeavour entail the use of money either self
generated or borrowed. In capital market, the stock in trade is money which could
be raised through various instruments under well governed rules and regulations
carefully administered and followed by different institutions or market operators
.External reserves constitute an integral part of the wealth of the nation such that
the lack of it brings worry to most nations and can limit the ability of the country
to make foreign currency denominated payments and limits its spending abroad.
Hence, countries are induced to hold reserves to allow monetary authorities to
intervene in markets to control the exchange rate and inflation. Adequate reserves
also allow the country to borrow from abroad and to hedge against instability and
uncertainty of external capital flows. Therefore, the objective of this paper is to
access the relative contribution of the Nigerian capital market if any to the growth
of her external reserve. The methodology used is purely descriptive and narrative
and the data used is secondary. The evidence provided in the study based on the
statistical analysis, revealed that the Nigerian capital market can induce the
growth of external reserve but it has not contributed to the growth of external
reserve in Nigeria. Furthermore, the study recommended among others the need
for availability of more investment instruments such as derivatives, futures,
swaps, options in the market and the expansion of the Nigerian capital Market by
the government creating an enabling investable environment that will increase
both the volume of transactions and number of securities traded in the market.
This will improve their ability to mobilize resources and efficiently allocate them
to the most productive sectors of the economy hence, contributing its portion to
the growth of her external reserve.

References

  • Adebiyi, MA. (2005), Capital Market Performance and the Nigerian Economic Growth, In: of Oluwatayo, A Olasupe (Eds) Issues in money, finance and Economic
  • Management Lagos, University of Lagos. Pp 13-18. Akingbohungbe, SS (1996), The Role of the Financial Sector in the Development of
  • The Nigerian Economy. Paper presented at a workshop organized by Centre for Africa law and development Studies. Pp 46. Akinsulire O (2004), Financial management El-tada ventures Ltd.
  • Al-FakI M.(2006), The Nigerian Capital Market and Socio-economic Development.
  • Paper presented at the 4 Distinguished Faculty of Social Science Public Lecture, University of Benin, 26 July, pp. 9-16. th Anyanwu JC, Oyefusi SA, Oaikhenan H, Dimowo FA.(1997), Structure of the Nigerian
  • Economy (1960 –1997), Onitsha: JOANEE Educational Publishers Ltd., P. 453.
  • Arumna Oteh, (2010), Capital Market as a Long Term Option for Financing Infrastructural
  • Development. A paper Delivered At the “Central Bank of Nigeria Infrastructure Finance Conference” Held at the Sheraton Hotel and Towers, Abuja. ASEA. (2014), African Securities Exchanges Association Annual Report for the Year 2014
  • Retrieved From www.african-exchanges.org. Central Bank of Nigerian (CBN), Statistical Bulletins of 2005, 2012 and 2013. Abuja
  • Central Bank of Nigeria Publications. fifth Avenue, New York, NY10010.
  • Ekwe M.C & Ojeh A. (2014), Contributions of the Nigerian capital market towards the development of the country. International Journal of Managerial Studies and Research (IJMSR) Volume 2, Issue 11, December 2014, PP 1-4 ISSN 2349-0330
  • (Print) & ISSN 2349-0349 Retrieved from www.arcjournals.org .
  • Nigerian Stock Exchange (NSE), Fact Book for 2004 –2009. Lagos: The Nigerian Stock
  • Exchange. Retrieved from http://www.nse.com.ng/ . NSE, (2014), Nigerian stock exchange 2014 market recap and outlook 2015 retrieved from www.nse.com.ng/NSEPresentation/NSE%20Yearly%20Review_2014%outlook_ vFinal.pdf.
  • Obaseki P.J. (2007), Building and Managing External reserves for economic development.
  • April - June 2007 Bullion, a publication of the central bank of Nigeria. Volume 31 No. 2, Pp 16-18.
  • Osaze BE. (2000), The Nigeria Capital Market in the African and Global Financial System
  • Benin City: Bofic Consults Group Limited. Onodugo, Vincent, & Oluchukwu.(2013), “Non-oil export and economic growth in Nigeria: a time series econometric model”, International Journal of Business Management
  • & Research (IJBMR) Vol. 3, Issue 2, Jun 2013, 115-124 ISSN 2249-6920 © TJPRC Pvt. Ltd.
  • Olowookere, & Kolawole. (2011), “The Contributions of Capital Market To Economic
  • Development In Nigeria International Journal of Economic Development Research and Investment”, Vol. 2 No. 1; April 2011.
  • Ojukwu, P. (2012), Nigeria External Reserves and Issues in Economic Development
  • Strategies: The Guardian, Wednesday 9, p. 27. Pandey, I.M. (2010), Financial Management. 13th Edition, New Delhi: Vikas publishing.
  • Soyode A.( 1990), The Role of Capital Market in Economic Development. Security Market Journal in Nigeria, 6.
Year 2015, Volume: 7 Issue: 1, 57 - 83, 01.06.2015

Abstract

References

  • Adebiyi, MA. (2005), Capital Market Performance and the Nigerian Economic Growth, In: of Oluwatayo, A Olasupe (Eds) Issues in money, finance and Economic
  • Management Lagos, University of Lagos. Pp 13-18. Akingbohungbe, SS (1996), The Role of the Financial Sector in the Development of
  • The Nigerian Economy. Paper presented at a workshop organized by Centre for Africa law and development Studies. Pp 46. Akinsulire O (2004), Financial management El-tada ventures Ltd.
  • Al-FakI M.(2006), The Nigerian Capital Market and Socio-economic Development.
  • Paper presented at the 4 Distinguished Faculty of Social Science Public Lecture, University of Benin, 26 July, pp. 9-16. th Anyanwu JC, Oyefusi SA, Oaikhenan H, Dimowo FA.(1997), Structure of the Nigerian
  • Economy (1960 –1997), Onitsha: JOANEE Educational Publishers Ltd., P. 453.
  • Arumna Oteh, (2010), Capital Market as a Long Term Option for Financing Infrastructural
  • Development. A paper Delivered At the “Central Bank of Nigeria Infrastructure Finance Conference” Held at the Sheraton Hotel and Towers, Abuja. ASEA. (2014), African Securities Exchanges Association Annual Report for the Year 2014
  • Retrieved From www.african-exchanges.org. Central Bank of Nigerian (CBN), Statistical Bulletins of 2005, 2012 and 2013. Abuja
  • Central Bank of Nigeria Publications. fifth Avenue, New York, NY10010.
  • Ekwe M.C & Ojeh A. (2014), Contributions of the Nigerian capital market towards the development of the country. International Journal of Managerial Studies and Research (IJMSR) Volume 2, Issue 11, December 2014, PP 1-4 ISSN 2349-0330
  • (Print) & ISSN 2349-0349 Retrieved from www.arcjournals.org .
  • Nigerian Stock Exchange (NSE), Fact Book for 2004 –2009. Lagos: The Nigerian Stock
  • Exchange. Retrieved from http://www.nse.com.ng/ . NSE, (2014), Nigerian stock exchange 2014 market recap and outlook 2015 retrieved from www.nse.com.ng/NSEPresentation/NSE%20Yearly%20Review_2014%outlook_ vFinal.pdf.
  • Obaseki P.J. (2007), Building and Managing External reserves for economic development.
  • April - June 2007 Bullion, a publication of the central bank of Nigeria. Volume 31 No. 2, Pp 16-18.
  • Osaze BE. (2000), The Nigeria Capital Market in the African and Global Financial System
  • Benin City: Bofic Consults Group Limited. Onodugo, Vincent, & Oluchukwu.(2013), “Non-oil export and economic growth in Nigeria: a time series econometric model”, International Journal of Business Management
  • & Research (IJBMR) Vol. 3, Issue 2, Jun 2013, 115-124 ISSN 2249-6920 © TJPRC Pvt. Ltd.
  • Olowookere, & Kolawole. (2011), “The Contributions of Capital Market To Economic
  • Development In Nigeria International Journal of Economic Development Research and Investment”, Vol. 2 No. 1; April 2011.
  • Ojukwu, P. (2012), Nigeria External Reserves and Issues in Economic Development
  • Strategies: The Guardian, Wednesday 9, p. 27. Pandey, I.M. (2010), Financial Management. 13th Edition, New Delhi: Vikas publishing.
  • Soyode A.( 1990), The Role of Capital Market in Economic Development. Security Market Journal in Nigeria, 6.
There are 24 citations in total.

Details

Other ID JA37SZ66CE
Journal Section Articles
Authors

Akaninyene Udo Akpan This is me

Ezenduka Victoria Ginika This is me

Publication Date June 1, 2015
Published in Issue Year 2015 Volume: 7 Issue: 1

Cite

APA Akpan, A. U., & Ginika, E. V. (2015). RELATIVE CONTRIBUTIONS OF THE NIGERIAN CAPITAL MARKET TO THE GROWTH OF EXTERNAL RESERVES (2005-2014). International Journal of Economics and Finance Studies, 7(1), 57-83.
AMA Akpan AU, Ginika EV. RELATIVE CONTRIBUTIONS OF THE NIGERIAN CAPITAL MARKET TO THE GROWTH OF EXTERNAL RESERVES (2005-2014). IJEFS. June 2015;7(1):57-83.
Chicago Akpan, Akaninyene Udo, and Ezenduka Victoria Ginika. “RELATIVE CONTRIBUTIONS OF THE NIGERIAN CAPITAL MARKET TO THE GROWTH OF EXTERNAL RESERVES (2005-2014)”. International Journal of Economics and Finance Studies 7, no. 1 (June 2015): 57-83.
EndNote Akpan AU, Ginika EV (June 1, 2015) RELATIVE CONTRIBUTIONS OF THE NIGERIAN CAPITAL MARKET TO THE GROWTH OF EXTERNAL RESERVES (2005-2014). International Journal of Economics and Finance Studies 7 1 57–83.
IEEE A. U. Akpan and E. V. Ginika, “RELATIVE CONTRIBUTIONS OF THE NIGERIAN CAPITAL MARKET TO THE GROWTH OF EXTERNAL RESERVES (2005-2014)”, IJEFS, vol. 7, no. 1, pp. 57–83, 2015.
ISNAD Akpan, Akaninyene Udo - Ginika, Ezenduka Victoria. “RELATIVE CONTRIBUTIONS OF THE NIGERIAN CAPITAL MARKET TO THE GROWTH OF EXTERNAL RESERVES (2005-2014)”. International Journal of Economics and Finance Studies 7/1 (June 2015), 57-83.
JAMA Akpan AU, Ginika EV. RELATIVE CONTRIBUTIONS OF THE NIGERIAN CAPITAL MARKET TO THE GROWTH OF EXTERNAL RESERVES (2005-2014). IJEFS. 2015;7:57–83.
MLA Akpan, Akaninyene Udo and Ezenduka Victoria Ginika. “RELATIVE CONTRIBUTIONS OF THE NIGERIAN CAPITAL MARKET TO THE GROWTH OF EXTERNAL RESERVES (2005-2014)”. International Journal of Economics and Finance Studies, vol. 7, no. 1, 2015, pp. 57-83.
Vancouver Akpan AU, Ginika EV. RELATIVE CONTRIBUTIONS OF THE NIGERIAN CAPITAL MARKET TO THE GROWTH OF EXTERNAL RESERVES (2005-2014). IJEFS. 2015;7(1):57-83.