THE IMPACT OF INFLATION ON NIGERIA CAPITAL MARKET

ABSTRACT
This research work tend to examine the impact of inflation on Nigeria capital market, inflation is a universal economic problem which affects both developed and less  developed countries  economic activities. The objective of this research study includes: to examines how inflation affects interest rates for loans, for development banks and to ascertain whether the inflationary trends affect the Nigeria capital market    operational adversely and also to examines the effect of inflation on Nigeria capital market as an essential segment provides inflationary support to the economy.  The researcher case study will employ on one hundred and seventy questionnaires and that will served as his sampling frame and the questionnaires will be analyzed by using simple percentage distribution formula. However, taro-yamani’s formula will be use to determine the sample size, primary and secondary data will be use also. The finding made by the researcher includes, the solution to reduce the impact of inflation in the Nigeria capital market, monitoring other sector of the economy  who’s activities are likely to spring up inflation, whether government extended the bank loan to important sector of the economy. Inflation have a significant impact on capital market growth. The researcher recommends that: the securities and exchange commission (SEC) and the Nigeria stock exchange (NSE) should engage in public enlightenment and improve on corporate governance framework  to encouraged more investment and improve transactions in the market considering it’s present low level of activities. It recommends that  the central bank of Nigeria (CBN) should formulate and use policy statements that will maintain inflation at low level.  In conclusion, inflation should be carried out to correct the  perception of inventors and genera


TABLE OF CONTENT
Title page                                  i
Certification page                             ii
Approval page                                 iii
Dedication                                 iv
Acknowledgment                              v
Abstract                                     vi
Table of contents                              vii
CHAPTER ONE
INTRODUCTION
1.1    Background of the study                      1
1.2    Statement of the problem                 3
1.3    Objectives of the study                     4
1.4    Research questions                         5
1.5    Research hypothesis                     6
1.6    Significance of the study                     7
1.7    Scope and limitation of the study             8
1.8    Definition of study                         8
1.9    Definition of terms                         10
 References                             16
CHAPTER TWO
2.0 LITERATURE REVIEW                     17
2.1 History and operation of the Nigeria
     capital market                              17
2.2    Hegotiated capital market                     21
2.3    The impact of inflation on the stock
exchange market (Nigeria capital market)     32
2.4    The impact of inflation on the new issue
market (primary market)                    35
2.5    Pricing in the exchange                      36
2.6    The all share index in the Nigeria stock exchange 37
2.7    Inflation in Nigeria                         39
2.8    Mathematical derivation of the CPI
(Consumer price index)                     42
2.9    Calculation of inflation rate                 44
2.10       Regulation                             45
2.11      Inflation                                 46
References                            52
CHAPTER THREE
3.0 RESEARCH DESIGN AND METHODOLOGY     54
3.1 Research design                             54
3.2 Population study                         56
3.3 Sample size determination                     56
3.4 Description of respondents                     57
3.5 Validation of tar research instrument             58
3.6 Reliability of the research instrument             59
3.7 Methods of data analysis                      59
     References                                 61
CHAPTER FOUR
4.0 DATA PRESENTATION AND ANALYSIS         63
4.1 Using tables to present data (date presentation     63
4.2 Analysis of data                             72
4.3 The reduce/organization of data                 75
4.4   Testing of hypothesis                     79
CHAPTER FIVE
5.0 SUMMARY OF FINDINGS, CONCLUSION
AND RECOMMENDATION
5.1 Findings                    85
5.2 Conclusion
5.3 Recommendations                          88
     Bibliography                    94
      Appendix 1                                97
      Questionnaire                            98