ABSTRACT

This study investigated the role of Nigeria stock exchange (NSE) on capital formation in Nigeria (1980-2015). It utilized Multiple Linear Regression analysis of the ordinary least square (OLS), Augmented Dickey Fuller (ADF) Test for unit root and other stability tests. The results of the Multiple Linear Regression analysis showed that the estimated coefficient of the independent variable, all share index (ASI) and that of market capitalization (MCAP) are statistically significant. By implication, a unit increase in ASI resulted to an increase or decrease in GFCF in Nigeria while a unit increase in MCAP will result to an increase or decrease in GFCF in Nigeria. The policy implication of this is that measures that will enhance the ASI of the NSE should be encouraged by the financial authorities in Nigeria.