ABSTRACT

The study has thus far investigated the effect government bonds on capital market growth in Nigeria. In doing this, the study has employed intensive use of theoretical, conceptual and empirical tools. The study covered a period of 37 years spanning from 1980 to 2016. The study adopted the OLS estimation technique for estimating the linear model developed in the study. The findings of this study are summarized as follows; Government bonds have a positive and significant effect on capital market growth in Nigeria. Government development stocks have a positive and significant effect on capital market growth in Nigeria. Monetary policy rate has a negative and significant effect on capital market performance in Nigeria. Based on the above findings, it is thus recommended that; Government should increase its presence in the Nigerian capital market so as to boost the performance of the capital market. It is thus concluded that government bond is a positive and significant determinate of capital market performance in Nigeria.