THE ROLE OF NIGERIAN CAPITAL MARKET IN THE GROWTH OF INDUSTRIAL SECTOR. A CASE STUDY OF UNILEVER NIGERIA PLC
Capital market is a financial institution set up for the granting of medium
and long term instrument. It is an instrument of financing the activities of
the various sector of the Nigerian economy.
The major concept of this work is to identify and discuss
the contributions on the roles of the Nigerian capital market in mobilizing
long term hence for the development of industrial sector.
Also to examine the activities of the Nigeria capital market and their direct
impact. It has on the Nigerian industrial sector.
Also to identify the problems and prospectus of Nigerian
capital market in financing and sustaining industrial enterprises.
Most of their information for the study was obtained from
the secondary sources and they were extracted from the central bank of Nigerian
publications 2005 and business news, daily newspaper, also simple regression
and correlation analysis were used in the study.
TABLE OF CONTENTS
Table of contents
Statement of the problem 3-4
Need for the study 4-5
Objectives of the study. 5
Research questions/ hypothesis 5-6
Scope of the study 7
Assumptions of the study. 7-8
Limitations of the study. 8-9
Definitions of terms.
Historical background of the research problem13-16
Theories and models to the research hypothesis 16-22
Current literature based on each of the relevant variables
of the models or theory.
Summary of the chapter. 38
Theoretical framework and methodology 39
Theoretical framework 39
Rational for choice of variables 42
The methodology 42
Data selection and analysis. 43-46
Presentation And Analysis Of Data 47
Data presentation classification and calculations.47-48
Analysis of data according to research hypothesis48-55
Analysis of data according to test hypothesis. 55-56
Interpretation of results. 57-59
Summary, Conclusion And Recommendations 60
Areas for further study 63
The Nigerian capital market has always played significant
role in the economic growth and development of the nation. In time of economic
boom, it assist in the provision of finance for expansion, retooling and
establishment of production facilities. Also incurrent period of recession it
has been providing finance for maintaining existing facilities diversification
and acquisitions. The capital market spearheads the ongoing prudential structural adjustment of
our national economy which will call for huge financial commitments of a
reasonable proportion of the financial needs. Under this structure re
arrangement will certainly be met through the
assistance of the Nigerian capital market.
A said feature of
the Nigerian economic landscape is the
large number of industrial projects of the federal and state government as well as the compelling if an unequipped private sector to
assume greater responsibilities in the economy in order to who may concern
reduced the domineering status of
The oil boom of the 1970;s made it possible for government
to embark on various industrial projects.
However, the non- completion or under utilization cases
where some of them are sully executed of
these projects an owners to waste of scare services resources under the
government industrialization programme
consideration are given to the small and medium scale enterprises (SME) which
form the center or the industrial development of the country. Unfortunately,
the SME are only living in the shadows of large business for so long hence
their importance as roots to the economic health of a nation have been
forgotten the problems of SME ranges
from improper policies which has been constitutes by the authorities guiding
them to the problems of taste of the Nigerians citizens with regards to foreign
products as well as the problems of finances for the formation and sustenance or SME’s.
1.1 STATEMENT OF THE PROBLEM
The Nigerian industrial sector in spite of the grate
potential has failed to achieve the great aim of converting Nigeria into
industrialized country, on like (1994) stated that there is apathy of our
indigenous companies to see quotation on the stock exchange second tier
securities market was established to remove the obstacles that militate against
indigenous companies seeking quotation and to provide wider and cheaper long
term source if financing for small and medium indigenous companies. In spite of
this most indigenous companies still sly away from the stock market, come cause
of these are the requirements if the stock change as been developed over the
year. Based on the above analysis these question arise why do our industrialist
sly away from capital market in spite of its numerous benefits?
Do our industrialists loose their enterprises by quotation
on the capital market? Are the disadvantages of capital market out weighting
the advantages. This research work seeks to answer these questions.