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Assessing the Extent of Development of the Nigerian Capital Market: A Comparative Analysis

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  • Okey O. Ovat

Abstract

The paper examines the extent of development of the Nigerian capital market by analyzing key indicators of capital market development such as listing, market capitalization and turnover ratio, comparing them with those of other emerging markets of Malaysia, Indonesia, Korea Republic, Singapore, and South Africa. In all, the Nigerian capital market performs poorly relative to other emerging markets. The implication of this is that even though they are all listed as emerging markets, the Nigerian capital market is still lagging behind others in terms of development. Given the fact that a deeper, more liquid and more resilient capital market is desirable in view of the positive correlation between capital market and economic growth, the paper recommends the following options to accelerate the pace of development of the Nigerian capital market: increase in market size; improvement on market infrastructure and institutional arrangements, internationalization of the market and macro-economic stability.

Suggested Citation

  • Okey O. Ovat, 2014. "Assessing the Extent of Development of the Nigerian Capital Market: A Comparative Analysis," International Journal of Financial Economics, Research Academy of Social Sciences, vol. 2(2), pages 73-81.
    • Handle: RePEc:rss:jnljfe:v2i2p4
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    References listed on IDEAS

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