CHAPTER ONE
INTRODUCTION
1.1 THE BACKGROUNG OF THE STUDY
The economic growth and development of any economy largely depend on the ability to raise capital through the capital market. The Nigerian stock exchange is a place where the enormous capital which is required to operate the huge industrial and commercial cooperation today can be raised.
Osaze (1991) asserted that the emergence of the institution of the Nigerian stock exchange is a spontaneous reaction of the enterprise economies. The significance reaction of the stock exchange in an economy such as our own cannot be over emphasized, for it is the bed-rock of large scale investment. The Nigerian government hopes to create an economy which would bring about the best in its citizens, compete effectively in the global market and improves the standard of living of its people. An economy where hard work, accountability and transparency would be the cardinal principle that both foreign and local investors would be proud to participate in. once investors looses confidence as a result of market abuse, the growth and development of capital market would be adversely affected and considerable effort would be required to restore confidence.
To be globally attractive and completive, the stock market must be seen to imbibe practices which are globally acceptable. For this reason government tries to put in place adequate regulatory mechanism to prevent or at least minimize market abuse in order to uphold the integrity and confidence that is very essential for the development of a viable and sustainable capital market.
The Nigerian stock exchange is the centre point of the Nigerian capital market. However, the Securities and Exchange Commission (SEC) and the central bank of Nigeria (CBN) are the apex regulatory bodies to the capital market. The tendency of our financial structure has been to channel loans to industries of the past rather than the future (i.e. the rich third world countries). This has become invariably clear that even those external financiers are eroding, thus the need for our own structure in Nigeria to meet up with the excess demand for capital to finance gigantic projects and businesses.
The international organization such as the world bank group are very conscious of the high risk involved in venture of loan given to third world countries which will eventually evade payment of such loans.
There is every need to meet such demand and requirements for smooth and long lasting system for sourcing of such requisite finance.
The study therefore examines in order to evaluate what regulatory bodies have done to ensure the development and sustenance of a viable capital market that will meet global challenges.
1.2 STATEMENT OF THE PROBLEM
For an emerging market like Nigeria, the stringent control measures put in place to regulate the activities of the Nigerian stock exchange for the smooth running is a very huge problem that is hindering the development of the market. The researcher hopes to seek for solution(s).
Regulators in our emerging market are also faced with a problem of ignorance, Nigeria with a population of 160 million, and half of the populations are ignorant about the investment opportunities that abound in the capital market. This is also a monumental problem that the researcher hopes to proffer solution to. Only if solutions to the stated problem are provided that the research work will be significant
1.3 THE OBJECTIVE OF THE STUDY
The objective of this study is to seek for the means of relaxing the stringent control measure put in place to regulate the activities of the Nigeria stock exchange to make it run smoothly and effectively.
To educate and sensitize Nigerians who are ignorant of the investment opportunities that are available in the Nigeria capital market. If about 160 million or half of the population invest in the capital market that will bring about a viable development and sustained growth in the Nigerian capital market.
1.4 RESEARCH HYPOTHES/QUESTIONS
Hypothesis is the method used by the researcher to test and prove guess statement in connection with the problem of the research being carried out in this study to confirm on the hypothesis made.
NULL HYPOTHESIS Ho- the impact of the regulatory bodies on the Nigerian capital market has not enhanced the listing of more companies on the floor of the Nigerian stock exchange.
ALTERNATIVE HYPOTHESIS Hi- the impact of regulatory bodies on the Nigerian capital market has enhanced the listing of more companies on the floor of the Nigeria stock exchange.
1.5 THE SIGNIFICANCE OF THE STUDY
The significance of this study cannot be over-emphasized. The research will contribute to the existing body of knowledge in the capital market administration; it will help the director general of the Nigerian stock exchange and his or her management team by exposing some means through which they can improve their performance towards meaningful achievement therefore, this study will have the following significance, the study will evaluate the impact of the regulatory bodies in developing a viable and sustainable capital market. Whether it has helped increased the aggregate of listing of more companies on the floor of the Nigerian stock exchange or not. When it is found out to be negative solution will be suggested.
In this regards, the research work will be significant to the following:-
1. The director general and his or her management team.
2. The Nigerian stock exchange (NSE)
3. Academicians. It will serve the purpose of arousing deep thought and genuine interest on the subject matter for further research.
4. The stock market operators.
5. The public as well need the knowledge to be able to assess the performance of the stock market
6. Government, regulatory bodies such as the Securities and Exchange Commission and the Central Bank on Nigeria
7. Non governmental organization(NGOs)
8. Financial analysts
9. Foreign and local investors
10. The general public
1.6 THE SCOPE OF THE STUDY
The scope of this research is limited to Nigerian Stock Exchange. The researcher will focus on the evaluation of the impact of regulatory bodies in developing a viable and sustainable capital market in Nigeria. In essence, the researcher will look at the regulatory frame work put in place to ensure the development of an effective and efficient capital market. Between 2005-2010
NOT THE TOPIC YOU ARE LOOKING FOR?
Once payment is made, kindly send us your project topic, email address and payment name to +234 810 144 4147
Once payment is confirmed, Project materials will be sent to your email
Importation is important for the development and growth of national economies because not all countries have the resources and skills required to produce certain goods and services thus there is need for them to import products which they deem fit is...
This study will be helpful in the academic field as it would be an addition to the issue of covid-19 and its effects on unemployment.
This study will be helpful to Lagos state Government and governments of other states in Nigeria in creating awareness of the effects of overpopulation and on how to diffuse the population properly.
This study will examine the effect of corruption in government agency on the economic growth and development of Nigeria.
This study will be helpful to organizations in creating awareness on the effects of relying only on corp members on other unemployed youths.
This study is of significance to the government as it will serve as a guide in implementing effective measures to curtail crimes and insecurity as it find means of solving the motorcycle and tricycle ban.
This study is significant as it provides an opportunity to hear Nigerian women's perspectives on their access (or lack thereof) to education and the hurdles that prevent them from participating in it.
This topic is critical to assisting policymakers in making decisions about how to allocate public funds. Future academics will be able to use these findings to learn more about the relationship between government agriculture spending and economic gro...
The government of Nigeria, students, and the general public will benefit from this study. Nigeria's ability to relieve poverty is contingent on adequate inflows of foreign investment funds and a secure investment environment.
This study it gives actual information on the current condition of government spending management and accountability.
Message Us on WhatsApp »
