FINANCIAL CRISIS AND THE NIGERIA CAPITAL MARKET

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ABSTRACT

This study was to examined the relationship between financial crisis and the Nigeria capital market. The study used money supply, inflation rate, exchange rate and financial deepening as proxy for financial crisis and market capitalization as proxy for the Nigeria capital market. The study made used of secondary data. The data were sourced from Central Bank of Nigeria Statistical Bulletin for the period of the years 2007 to 2021. The descriptive statistic and the ordinary least square regression analysis were adopted for analyses. It was found that during the considered period, money supply and exchange rate have a positive and significant relationship with market capitalization. It was also observed during the considered period that, inflation rate and financial deepening have a negative and insignificant relationship with market capitalization. The study recommends that, government should as a matter of urgent importance to come up with policies to reduce and control the inflation rate leading to financial crisis in the economy.

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