1.0 Introduction
Nigeria like must other developing countries often thinks that the Weapon to combao poverty and unemployment is an economy is to embark on a massive and rapid development of modern industrial sector. Events have proved this to be a general disillusionment especially when the performance of these industries showed that they performance of these industries showed that they cannot adequately provide answer to the economic and social problem of the economy.
Consequently, there is now a wide spread campaign and deep interest in Nigeria today in development of industrial sector as a better alterative strategy towards self − sufficiency and complete economic independence.
The industrial sector now seems to constitute the growth sector of the economy. Ironically however, this sector has suffered the worat neglect from both the nation’s policy makers and the formal financing sources.
Although finance is not the only problem confronting industrial sector, over conviction is that with adequate financial facilities, they can successfully surmount other problems. As well be shown later a well organized stock market that takes into account the social − cultural background of the people and the centre of its deigns the needs of the economy should be able to rescue industrial sector of their financial impasse and endure a quick recovery of the economy.
1.2 Statement Of The Problems
The basis of this project research is on the contribution of stock market toward the industrial development in Nigeria.
It becomes inevitable that we should review the economic situation of the last two and a half decades to justify our stand that the stock market has a leading role to play revitalization in industrial sectors. Both government and companies obtain loan with ease. Where government has needed to secure foreign these can also be easily obtained as foreign credit considered government sufficiently credit worthy. There was less − enthusiasm by the government and company to raise finance than the domestic capital market to raise finance from the domestic capital market.
The has accounted for the growth of the market until the promulgation of the indigenization decreases decrees of 1972 and 1980, which forced some enterprises to seek exercise, there has been no major development in the market to enhance industrial rapid growth in the industrial economy.
Hence, the effectiveness of stock exchange market in achieving the desired improvement in the sector is questionnaire.
Thus the research work is designed to examine the impact of stock exchange market on industrial sector in Nigeria.
1.3 Significant Of The Study
The study of this topic is “the impact of stock and example market on industrial development in Nigeria” is aimed at discussing the importance and furnishing the government with the relevance of Nigeria Stock Exchange market in receiving the already dying stock exchange market situation of this country.
Moreover, it is designed to look into problems facing the normal functioning of the stock exchange market and the possible solutions as well as the strategy in developing the organisation.
1.4 Objectives Of The Study
In view of the above observations, the objectives the study are set first as follows:-
- To provide an in-depth analysis of the operation of the Nigeria stock exchange in the provision of finance to industrial sector.
- To find out, if any reason(s) for the relevance of small or large indigenous enterprises from seeking quotation in the stock market.
- To adduce workable solution or recommendation that will alleviate those problems identified as constituting major barriers for industrial sectors in making of the financial facilities offered by the stock market.
- This study is unique because of the dominance and the growth attributes of industrial sectors in the economy. Industrial sectors are known to be agents of innovation in the world over the Nigeria’s dream of technological breakthrough to be realized, there is need to be promote the establishment of those enterprises that would be largely inward looking and venturing into new local sources of raw materials.
- To face the industrial sector through the stock market in an area that has attracted less attention from researchers over the years.
1.5 Research Hypothesis
Some facts are supposed in order to explain certain facts in this study and also some questions were prepared so as to make the project a record of reference in the future.
The assumptions are:
- Stock exchange market is established to finance and promote industrial development or sector in Nigeria.
- To develop the country from traditional society to the age of mass production.
1.6 Scope And Limitation Of The Study
Since the concern in this study is to explore the possibility of raising long-term funds to finance viable investment proposed in industrial sector either small or large business the study also intend to examine the preparedness of Nigeria Stock Market to fulfil the objective of relieving industrial sector of the financing stains.
Although, other alternative sources of finance in industrial sectors are available, they will only be the extent which they are relevant to the study. In particular the discussion here will bring out the gap arising from the unsatisfactory operations and hence the need for stock market to fill the gap.
Finally, this study will cover the period between 1983 and 1995 to enable to concentrate my findings. This period coincides with the period when significance development took place in the Nigeria Stock Market and the economy as a whole.
It is pertinent to observe that significant limitation may be imported on many analyses because of the use of secondary data.
1.7 Organisation / Plan Of The Study
The whole research work is complied together into five chapters. Chapter one contains the introduction to the project topics or subject matter, statement of the problem, objectives of the study, research hypothesis, scope and limitation of the project, organisation plan of the study and definition of some basic terms.
Chapter two is all about the literature review introduced the genesis of Stock Exchange Market, characteristic of stock Exchange, the role of stock market in industrial sector, stock market institution, type of stock markets, the motive for promoting stock market in Nigeria and factors inhibiting the industrial sector in Nigeria.
Chapter three of the text contains research methodology followed by instrumentation and research design, sample and sampling techniques and procedure for data collection.
Moreover, chapter four contains data findings, data analysis as well as research finding.
And chapter five contains the summary of the whole project, Recommendations, conclusion and Bibliography.
All these are well formed to meet the requirement of project topic and more so to make it a source of reference in the feature.
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