ABSTRACT:

The paper examines the impact of capital market efficiency, in the face of capital market reforms. on Nigeria's economic growth. The methodology adopted is purely empirical. consisting of analysis of stylized facts on some of the indicators of capital market development, and multiple regression analysis with Ordinary Least Squares (OLS) estimation technique. The study's findings show that while the capital market has witnessed some growth over the years. it is yet to contribute significantly to economic growth in Nigeria. The findings reveal that the market is characterized by narrowness and shallowness, illiquidity, dominance of government securities. and unnecessary government interference in the pricing of securities which impede its efficiency and adversely affect growth. The paper concludes with some recommendations, which among others. include: formulation of policies geared towards the reduction of the dominance and interference of government in the market. intensive awareness and orientation to individuals and companies on the need to invest in the capital market. and the provision of appropriate legal and regulatory framework to regulate the activities of participants in the market.