Abstract

This study adopted the ex-poste factor research design and made use of the econometric procedure in estimating the relationship between capital market efficiency and economic growth in Nigeria. 
Secondary data were collected on Market Capitalization (MC), Total Market Transactions (TMT), Broad Money (BM), Interest Rate (IR), Exchange Rate (ER) and Total Market Securities (TMS) which were used as components of capital market to regress on Gross Domestic Product (GDP) as the dependent variable representing economic growth. The study adopted the ECM analytical tool and the result revealed a mixed correlation between the dependent variable and the explanatory variables. The result further indicated that absence of multicollinearity and no serial autocorrelation among the variables. The study therefore recommended that the Security and Exchange Commission should be more proactive in its surveillance roles by effectively monitoring and enforcing regulations in order to curb sharp practices which may undermine the integrity of the market which is capable of eroding investors' confidence and also that there should be diversification of in market operations by introducing new financial instruments and leveraging on emerging technology to support and enhance markets products and services.