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Capital Market and Manufacturing Sector Financing in Nigeria

In: Business and Management

Submitted By fifosky
Words 5321
Pages 22
CAPITAL MARKET AND MANUFACTURING SECTOR FINANCING IN NIGERIA
Ewa, Efa Okoi

Department of Business Management
University of Calabar, Nigeria
+234-8037-796-936
efa_ewa@yahoo.com

Abstract
This paper discusses mainly the role of the capital market in financing the manufacturing sector in Nigeria. The discussion centered on the state of the Nigerian manufacturers, background, challenges and the imperatives of the capital market meeting the financial and investment challenges of the sector in the face of recent economic reforms and increasing competition posed by globalization. The study sought to determine the extent to which the Nigerian capital market contributes to the development of manufacturing industries. An attempt was made to highlight government intervention in funding the sector and the reality of the country’s manufacturing sector. The study revealed that the Nigerian manufacturing sector has been on the decline owing mainly to government reliance on the oil industry, the decaying infrastructural facilities in the country and non-access to investment fund by local manufacturers. The study concluded that the capital market, despite the problems and challenges it may faced, is a veritable tool in the growth and development drive of the country’s manufacturing sector.

1. Introduction
The manufacturing sectors in any country of world rely on medium and long-term fund to carry out its productive activities. Equity capital alone is never adequate and external sources of funds are usually sought. Such needed funds are not available in the money market; The capital market is where such funds are sourced. Nigeria, like other economies of the world has her own capital market. The growth and development of the capital market in Nigeria can be traced to 1946 with the floating of N600,000 worth of government stocks. However, an organized market for the...

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