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
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