GLOBAL ECONOMIC MELTDOWN

This study attempts to empirically examined the impact of the global economic meltdown on the Nigerian capital market performance. The study used financial deepening as proxy for economic meltdown, exchange rate, inflation rate and market capitalization as proxy for the Nigerian capital market. This study made use of Secondary data. The data were sourced from the CentralBank of Nigeria statistical bulletin for the period 2007 to 2022. Descriptive statistics and Granger causality test were adopted for analyses. It was found that financial deepening during the considered period has no significant causality effect on the Nigerian capital market performance. It was also observed that during the considered period, exchange rate has no significant causality effect on the Nigerian capital market performance, while inflation rate has no significant causality effect on the Nigerian capital market performance. The study recommends that, government and regulatory authorities should implement policies to improve the declining market capitalization by injecting more funds into the market and encouraging more foreign investors to participate and invest into the market.