Osarodion Jeffery OMOBUOGBE

This study examined the relationship between macroeconomic variables and stock market returns in Nigeria. Using a quantitative approach, the research analyzed how key economic indicators such as interest rates, inflation rates, exchange rates, GDP growth, and unemployment rates influenced the performance of the Nigerian stock market over the period from 1999 to 2024. The study employed secondary data sourced from the Central Bank of Nigeria and the Nigerian Exchange Group, utilizing econometric models, particularly the Ordinary Least Square (OLS) regression, to establish relationships between the variables. The findings revealed significant impacts of interest rates, inflation, and exchange rates on stock market returns, while GDP growth and unemployment rates exhibited a moderate correlation. The study highlighted the complex interplay of these macroeconomic variables and the vulnerability of the stock market to economic shocks. The results provided valuable insights for policymakers, investors, and researchers, suggesting that effective management of these macroeconomic factors was crucial for stabilizing the Nigerian stock market and fostering sustainable economic growth. Recommendations included monetary policy adjustments, fiscal reforms, and targeted strategies to address inflation and unemployment, which could enhance investor confidence and improve stock market performance.