IMPACT OF MACROECONOMIC INDICATORS ON STOCK MARKET PERFORMANCE IN NIGERIA
Bello Mohammed Goni , Francis A. Akawu, PhD and Abdul Adamu, PhD
Volume 12 Issue 3
Abstract
This study examines the impact of macroeconomic indicators on stock market performance in Nigeria from 1988 to 2024. Using an ex-post facto design, the research addresses pertinent questions through secondary data sourced from the Central Bank of Nigeria's annual financial statistics bulletin for the year 2024. The study employs the augmented Dickey-Fuller (ADF) method for unit root tests to ensure the variables are stationary, thereby avoiding spurious results. The study employed a vector autoregressive (VAR) model. The findings indicate that gross domestic product (GDP) has a significant and negative impact on stock market performance in Nigeria during the specified period. Inflation (INF) revealed an insignificant and negative impact, whereas interest rate demonstrated an insignificant and positive influence on stock market performance in Nigeria during the period of the study. Overall, the study concludes that macroeconomic indicators have a mixed impact on Nigeria's stock market over the study period. It is recommended that the Nigerian government should prioritise policies that enhance money supply and balance of payment, while carefully addressing the negative impacts of inflation and interest rates to improve stock market performance. Keywords: Macroeconomics, Stock Market, Performance, Market Capitalisation, Interest Rate, Foreign Capital Flow
Download Paper