The mobilization of resources for national development has long been the crucial focus of development economists. Consequently, the more developed the financial system of an economy is, the more efficient it is likely to be in the mobilization and allocation of resources for development purposes. The financial system of any society is the framework within which capital formation takes place.

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Within the broad classification of the capital market is the stock market, which operates as the rallying point for the overall activities in the capital market.

Until now, the literature has mainly focus on the role of financial intermediation in the process of economic growth and capital accumulation. The stock market also known as the stock exchange or equity market performs some functions that promote the growth of the economy Osinubi, In recognition of the importance of the stock market in economic development, many developing countries have launched stock exchanges during the past few decades.

This explains the drive toward the establishment of stock exchanges in African countries especially during the past two decades, with new stock markets established in Ghana, Malawi, Swaziland, Uganda and Zambia. According to Komo, this rapid expansion of stock exchanges in Africa has contributed to economic development in various ways, which amongst others include facilitating the privatization process, diversifying the financial services, facilitating long term capital mobilization, provision of alternative investment opportunities, attracting capital inflow and serving as a signal of overall macroeconomic performance.

Aware of the crucial role played by the stock market in any modern economy, the Nigerian government in established the Nigerian Stock Exchange NSE. The role of a developed stock market in the development of any economy cannot be over emphasized in view of its potentials and likely impact best spread forex trading systems the economy if well harnessed.

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Over the years, the Nigerian Stock market has experienced relative stability and recorded impressive growth. This growth has been most significant especially stock market economics project the introduction of the Structural Adjustment Programme SAP in the early s, which brought about the privatization, commercialization and liberalization programmes, all of which has helped in boosting activities in the stock market.

In recognition of the above, the research questions for this study are:. The development of the Nigerian Stock Exchange is not positively associated with economic growth in Nigeria.

The development of the Nigerian Stock Exchange is positively associated with economic growth in Nigeria.

As a market place where securities Stocks, bonds, shares are bought and sold openly with relative ease, the stock exchange is very important to investors.

This research work will also serve as a reference for subsequent write-ups and stimulate further in-depth and insightful study in this area of study. Lastly, this study was also constrained by inadequate time on the part of the researcher, since attention had to be given to other course work.

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