Welcome to the International Institute of Tropical Agriculture Research Repository
Capital market operations in an emerging economy: the case of Nigeria
Abstract/Description
One of the key challenges facing big businesses is how to secure the huge
financing they need to invest in their businesses. From banking, insurance,
pharmaceuticals, conglomerates, oil and gas companies and every other sector of
the economy, the story is the same. Everyone faces the challenge of funds
generation for executing their developmental projects and generally keeping the
engine of their businesses running.
The government, in a bid to solve this problem, established the Nigerian Securities
and Exchange Commission (SEC) as a reliable financial institution where companies
could be listed and secure funds to enable them pursue their business plans
without going through the banking rituals of looking for collateral securities to get
banking loans.
To conduct an effective research in this area, therefore, the researcher used a
number of research tools, including survey method and the use of questionnaire
and interview. This was also backed up with library research to review previous
works in the area and thus collect useful data for the work.
The findings of the researcher include maintenance of proper regulations on the
operations of the Nigerian capital market and ensuring that the interest of investing
public is protected. Also the public enlightenment programme by the regulatory
authorities evidenced by the daily official trading and weekly summary of trading
activities revealed that the authorities have adequately created awareness on the
activities of the capital market. The researcher recommends, among other things,
strict adherence to the decree and rules that established the Nigerian capital
market and the Securities and Exchange Commission. It is also recommended that
operators and stakeholders in the capital market should demonstrate a greater
display of integrity and transparency now that they have introduced electronic
trading or automated trading system, and should ensure proper maintenance of the
system.