This study seeks to examine the impact of capital market on the growth of the Nigerian economy under a democratic rule. Despite the popular belief that democracy promotes investmentsfriendly environment, the Nigerian capital market seems not to have lived up to expectation in terms of its contribution to economic growth. The study relies on time series data, multivariate regression method was used to analyze the data. The result shows that while total market capitalization and all share indexes exert positive influence on the GDP growth rate, the total value of stock has a negative effect on the GDP growth rate, and none is significant. The study therefore recommends that government should depict concerted effort and sincerity of purpose in the capital market development.

This study seeks to examine the impact of capital market on the growth of the Nigerian economy under a democratic rule. Despite the popular belief that democracy promotes investmentsfriendly environment, the Nigerian capital market seems not to have lived up to expectation in terms of its contrib...