Capital Market Operations and Public Projects’ Financing in a Developing Economy: An Empirical Evidence from Nigeria

摘要

This study appraised the role of the Nigerian capital market in public projects’ financing in the country. The Ex post-facto research design was adopted as the study guide. Secondary data were sourced from the Central Bank of Nigeria’s Statistical Bulletin and the Nigerian Stock Exchange Fact book (several issues). Data were generated from a period of five(5) decades, ranging from 1961 to 2010. The data collected were analysed using Pearson’s Product Movement correlation, while the descriptive analysis for the State Government Redeemable Revenue Bonds that were raised and traded on the Nigerian stock market during the period covered by the study was also made explicit. The findings revealed that, there is no significant relationship between the volume and value of government securities raised and traded on the Nigerian stock market during the period covered by the study. The study revealed that using the capital market to finance public projects appear to be mimicked by the Nigerian financial system as predominantly a means for government to raise loan finance rather than an instrument for mobilizing industrial finance. It was recommended that using the capital market to finance public projects in Nigeria should be made to become part of the operating environment in the Nigerian financial system.