DU JOURNAL OF MANAGEMENT & SOCIAL SCIENCES

• Evbasiegbere Isibor

  University of Benin, Benin City

  Author

• Comfort Douoju GBERE

  University of Benin, Benin City

  Author

This study investigates the relationship between stock market dynamics and macroeconomic performance in Nigeria over the period 1990–2024. Focusing on key stock market indicators market capitalization, all share index, stock market liquidity, number of listed companies, and market interest rates the research examines their influence on macroeconomic variables, including GDP growth rate and inflation rate. Employing the Autoregressive Distributed Lag (ARDL) model, the study analyzes both short-run dynamics and long-run equilibrium relationships. The findings reveal that market capitalization consistently exerts a significant positive effect on GDP growth, while other stock market indicators, including liquidity and the All-Share Index, display mixed or limited influence. Inflation appears persistent over time, reflecting structural challenges in stabilizing price levels. The study highlights the critical role of a well functioning stock market in enhancing macroeconomic performance and emphasizes the need for stable policies, improved market depth, and efficient financial intermediation to optimize economic outcomes in Nigeria. The results provide important insights for policymakers, investors, and financial market regulators seeking to strengthen the link between capital market development and national economic growth.

1. Evbasiegbere Isibor, University of Benin, Benin City

   Department of Finance, Faculty of Management Sciences, University of Benin, Benin city

2. Comfort Douoju GBERE, University of Benin, Benin City

   Department of Finance, Faculty of Management Sciences

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