THE ROLE OF CAPITAL MARKET IN FEDERAL GOVERNMENT FINANCING

THE PROPOSAL OF THE ROLE OF CAPITAL MARKET IN THE FEDERAL GOVERNMENT FINANCING.

Nigeria has gradually come of age in terms of financial institutions which make up the system in Nigeria financial system has with messed a rapid growth in the last decade.  This is evidenced from the complexity of the operation of these institutes.  The growth can be claimed to be due to the oil boom and the awarness of the importance of money by the populace (monetization) and development of investment strategies.  The procurement of long term finance remains a worrying, because banks always want to avoid the problem of liquidity.  In other words, any individual as a corporate entity in needs of find for investment seldomly finds it easy.

This problem led to the establishment and development of the capital market to provide long term securities and or in vestible finds.

          In Nigeria there are formal and informal capital markets.  This is as a result of the prevalent financial dualision which is due to educational disparity among the populace.

          This paper has been prepared with the capital markets potentials as a catalyst in economic development via economic liberalization of the capital market.

However, my chapter one of my project will start with the preamble to the study while chapter two is on the literature review that is, how information on the study was obtained through the work of various authors.

          Chapter three deals with the Nigeria capital market in its entirely.  It touched the indigenous capital market before the colonial infusion, the definition and structure of the present Nigeria capital market, its participants who are vitual for the proper functioning of the market and after math of the economic liberalization I deregulation exercise on the capital market.  Chapter four deal with finding, while chapter five gives some recommendation and draws conclusion on the study.

TABLE OF CONTENTS

TITLE PAGE                                                                II

APPROVAL PAGE                                                      III

DEDICATION                                                               IV

ACKNOWLEDGEMENT                                             V

PROPOSAL                                                                 VI

TABLE OF CONTENTS                                             VIII

CHAPTER ONE

INTRODUCTION

1.1       BACKGROUND OF THE STUDY                             1

1.2       STATEMENT OF THE PROBLEM                                     2

1.3       PURPOSE/OBJECTIVE OF THE STUDY               4

1.4       SIGNIFICANCE OF THE STUDY                              5

1.5       LIMITATIONS OF THE STUDY                                 5

CHAPTER TWO

REVIEW OF RELATED LITERATURE                              7

CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

3.1       SOURCES OF DATA (SECONDARY SOURCES)22

3.2       LOCATION OF DATA                                                 23

3.3       METHODS OF DATA COLLECTION                       23

CHAPTER FOUR

FINDING                                                                                24

CHAPTER FIVE

RECOMMENDATION AND CONCLUSION                      26

BIBLIOGRAPHY                                                                             30

CHAPTER ONE

INTRODUCTION

1.1                       BACKGROUND OF THE STUDY

          Broadly speaking, there are two kinds of chance revolutionary or discontinuous change which is gradually and common (suble) yet dynamic.

          It is this latter form of change that is advocated for the development of Nigerian securities market vis-avis the capital market as a means of sourcing funds for the public sector.

          Right from the day Nigeria returned their independence till date, the country has been searching for economic change and development that would bring better living for her feering population.  This economic change and development could only be made possible by the public sector with enough of finance for its long-term project.

          However, comes the vital role, which the Nigerian capital market plays in the development of the nation.  The public sector today knows no bound.  What was seen as the public sector twenty years back will be grossly inadequate of considered as the public sector of present day Nigeria.  Due to this seeming limitless nature of the public sector which embraces local, state and federal governments.  The expenditure of these various government are always on the increase.  But with the privatization and commercialization programme of federal government parastatals had either it runed down or put to an end to.

          The deregulation of the capital market is meant to bring about sanity to the operation of the capital market to foster the much needed role of providing capital or funds to the public sector for its financial obligations.

1.2    STATEMENT OF THE PROBLEM

          In the course of this study some problems associated with the Nigerian capital market have been identified.

          These includes: