The Capital Market And The Challenges Of Real Sector Financing In Nigeria.
[A STUDY OF THE PERIOD 2000-2009]

Hypothesis 3

Ho: (Null Hypothesis): The growth in the value and traded volume of securities quoted on the Nigerian Stock Exchange does not contribute to economic development.

Hi: (Alternative Hypothesis): The growth in the value and traded volume of securities quoted on the Nigerian Stock Exchange contributes to economic development

1.4 SCOPE AND LIMITATION OF THE STUDY

This study is focused on the analysis of the Nigerian capital market and real sector development in Nigeria using selected financial instruments by some quoted companies in the Nigerian Stock Exchange. However, owing to the limitation of time, resources especially finance, data from the institutions, the analysis will be limited to the Nigerian Stock Exchange and three selected companies quoted in the productive sector of the Stock Exchange such as brewing, construction and food and beverage. The period to be evaluated by this study is a period of ten years 2000 to 2008. 9

1.5 SIGNIFICANCE OF THE STUDY

The capital market is a major source of long term savings mobilization in any economy. For any economy to grow, the real sector of the economy must be actively engaged in production of goods and services. Given this view, therefore, a functional real sector in any economy is a sine-que-non to economic growth and development. Therefore, a study of this nature is very essential to all stakeholders in the Nigerian economy such as Manufacturers Association of Nigeria, Industrialist, Bankers, Stockbrokers, Financial Sector Regulators, the Political Managers, Investors, consumers and the entire Nigerian Society. Also, the findings from this study will extend the frontier of existing knowledge, literature and serve as a stepping stone for further research. It will provide input for investment, policy making and decision.

1.6 RESEARCH METHODOLOGY

In conducting a research work, the student is involving in designing the research. This involves the employment of survey and descriptive designs. 10 The researcher also determines the sample population and sample size of the study. The population being the Nigerian capital market and selected instruments traded on the Stock Exchange for firms in the productive sectors of the economy. The process of sourcing, selecting and obtaining valid and reliable data as well as method to be employed in the analysis of the data is thus carried out by the researcher. Given the nature of this topic, the researcher will rely mainly on secondary data.

The sources of the data will include:

(i) The Nigerian Stock Exchange Daily Trading List

(ii) The Nigerian Stock Exchange Quarterly and Annual Report/Review

(iii) Security and Exchange Commission (SEC) Quarterly Reports

(iv) Security and Exchange Commission Annual Report and Account

(v) Financial Statement of quoted companies in the manufacturing and Stock Exchange

(vi) Central Bank of Nigeria (CBN) Statistical Bulletins 11

(vii) Annual reposts, published journals, previous research work as well as magazines

The following statistical tools will be applied in the test to be carried out in this research work:

(a) Simple Regression Analysis

(b) Correction Coefficients

(c) Coefficient of determination

(d) Student’s t-test

(e) Bare chart

(f) Simple percentage analysis At the end of the analysis, the degree of the association of the dependent variable with each of the independent variables will determine their position in the valuation process.