F. Mogbolu

This study examines the role of the Nigerian Exchange Group (NGX), in promoting capital formation within the Nigerian economy. The research evaluates how the issuance of securities and market capitalization influence gross fixed capital formation (GFCF), which serves as a proxy for investment. Annual time series data spanning from 1985 to 2023 were analyzed using the Autoregressive Distributed Lag (ARDL) model to capture both short-run and long-run dynamics between the stock market and capital formation. The results reveal evidence of a long-run equilibrium relationship among the variables, confirming that the stock market have significant implications for capital formation in Nigeria. However, the direction of these effects is mixed. The issuance of securities exhibits a positive but statistically weak short-run impact, while its lagged values show negative and significant effects, suggesting that funds raised through new issues are not always efficiently channelled into productive investments. Similarly, market capitalization exerts a negative long-run influence on capital formation, indicating that growth in the market’s value has not consistently translated into real sector investment. In contrast, domestic credit exerts a strong positive effect on capital formation, while the real lending rate shows a significant negative effect, underscoring the importance of credit availability and affordable borrowing costs for investment growth. The study concludes that the Nigerian Stock Exchange plays a vital, role in mobilizing long-term funds for productive investment. It recommends that regulators strengthen market transparency, deepen public participation, promote broader access to financing instruments and ensuring macroeconomic stability to enhance the stock market’s capacity to support sustainable capital formation and economic growth in Nigeria.

This study delves into the intricate relationship between currency hoarding, monetary policy, and inflation within the context of Nigeria for the periodof 1990to 2020. It aims to ascertain if there is a relationship between currency hoardingand inflation in Nigeria and also examine how currency hoarding af ects therelationship between monetary policy and inflation in Nigeria. The study wouldbeof utmost significance to student and other researchers who are interestedinunderstanding how currency hoarding af ects the relationship between monetarypolicy and inflation in Nigeria. It focuses on unravelling how changes in currencyin circulation, interest rates and money supply impact inflation dynamics. Themethodology employed is the Error Correction Model (ECM), analysingdataspanning the years 1990 to 2000. Findings reveal crucial insights. CurrencyinCirculation as a percentage of GDP (CPG) is positively related to inflationrate(INF), signifying that an increase in CPG contributes to inflationary pressures. Conversely, interest rates (INTR), exhibits a statistically significant negativerelationship with inflation, with higher interest rates acting as a counterforcetoinflation. However, changes in money supply (MS) shows no significant impact oninflation. The interaction term (CHMP) was found to have minimal impact oninflation. Policy recommendations drawn from these findings emphasizeabalanced management of currency in circulation to avoid excessive inflation, continued use of interest rates as an ef ective tool for controlling inflation, diversification of monetary policy tools, and the adaptation of holistic economicpolicies. Improved data collection and research, exchange rate management, andtransparent communication are also highlighted as critical factors for ef ectivelyaddressing inflation in Nigeria. In summary, this study uncovers the multifacetednature of inflation dynamics in Nigeria and provides valuable guidance for craftingcomprehensive policies to manage inflation in the nation.