BUDGETING CAPITAL EXPENDITURE AND STOCK MARKET PERFORMANCE IN NIGERIA

ABSTRACT

This study reviewed budgeting capital expenditure and stock market performance in Nigeria for a period of 33 years from 1990 to 2022. The study’s objective is to examine the impact of healthcare budget expenditure on the performance of the stock market in Nigeria, to assess the influence of works and housing budget expenditure on the performance of the Nigerian stock market, to investigate the relationship between education budget expenditure and the performance of the stock market in Nigeria, to analyse the effect of energy sector budget expenditure on the performance of the Nigerian stock market; and explore the impact of agriculture budget expenditure on the performance of the stock market in Nigeria. The research design employed is the longitudinal quantitative research design utilising the Fully Modified Ordinary Least Squares (FMOLS) approach for econometric analysis. The analysis of the data revealed that healthcare budget expenditure does not significantly impact the performance of the stock market in Nigeria, that there is no significant influence of works and housing budget expenditure on the performance of the Nigerian stock market, that education budget expenditure has a significant relationship with the performance of the stock market in Nigeria, that energy sector budget expenditure significantly affects the performance of the Nigerian stock market, and that agriculture budget expenditure significantly impact the performance of the stock market in Nigeria. The study concluded that the findings underscore the importance of sector-specific analysis in understanding the intricate dynamics between government budget allocation and stock market performance, providing valuable insights for policymakers and investors alike, and therefore recommends, among others, that policymakers should focus on ensuring efficient allocation and utilization of healthcare funds.