Journal of Emerging Trends in Economics and Management Sciences: Home

Article Title:
The Significance of Capital Market in the Nigerian Financial System
by Ahmed Dahiru Askira, Usman Mohammed Aklahyel and Yahaya Hassan Gaya

Abstract:
In highlighting the significance of the capital market in the Nigerian financial system, it is important to note that the capital market does not performs its functions in isolation. The institutions performing intermediation functions with the Nigerian capital market made up the Nigerian financial system. However, this paper intends to examine the significance of the capital market in the Nigerian financial system. The paper intends to provide literature to financial experts as well as government policy makers. Hence, market capital is one major area of the economy that has become of serious concern to scholars all over the world because of its roles in economic development. Although, the limitation is that the paper only focused on institutions playing intermediation with the Nigerian capital market. The role of the capital market within financial system is to offer enterprises new and wider opportunities of obtaining the financial resources they need for expansion and efficient operation. These financial institution or market were established primary to help those who may wish to set up business but could not because of financial difficulties and through such establishment the Nigerian standard of living can be improve. Therefore, the vital role played by financial institutions in the economic development of Nigeria cannot be overemphasized and these are in the area of provision of funds and financial advisory services. Hence, this paper recommends that since one of the pre-requisites for a successful economic development programme is a suitable and adequate credit delivery system to serve the generality of industrialists? commerce and farmers. To achieve these laudable objectives, there should be a committee of experts in financial matters set up by government to monitor government credit policies.

Keywords: significance, role, capital market, financial system and economic development

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