The Capital Market In The Mobilization Of Funds For Industrial Development (The Nigerian Case)

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Project and Seminar Topics with material for Banking and Finance

Project and Seminar Topics with material for Banking and Finance


Dedication


This work is dedicated to the Holy Spirit for fulfilled inspiration throughout the period of this research work.
I also want to thank and sincerely appreciate the inputs of my supervisor, Chief A.A Ojiuko., my parents Mr. & Mrs. Michael chukwu, my fellow colleagues and the department of banking and finance for their support.


Acknowledgement


I am greatly indebted to a lot of people for making this possible. Special mentions are my parents Mr. & Mrs. Micheal chukwu and my sponsor Mrs. Grace Chukwu for their moral and financial contributions.

Most worth of thanks is my outstanding supervisor, Chief A.A Ojiuko who was of an immense help throughout the cause of this work. I won’t forget to mention and appreciate the Dean of school of business and management technology. My HOD, Mr. Ngwu T.C, and my lectures Chief A.A Ojiuko, Mr. N.O.N Kanu, Mr. N.N Uzoka, Mr. Ifeanyi Nwokoro, Dr. J.U Osubor, Dr. Mrs, Anyanwu F.A and the host of others.

Furthermore, I recognize the members of my family especially Mrs Nnenna Okechukwu, my siblings and my cousins and as well as my spiritual father Rev. prince Okoro Nnanna, whose prayers are really answered in the completion of this project work. I will not fail to thank my friends, Chiemela Nwamnna, Obasi Okeke, Chioma Okechukwu, Columbus Ogechi, Hannah Okechukwu for their care and support.

Finally I humbly acknowledge every person and the material that contributed to the efficiency of this work. The federal polytechnic library and all the website that provided information. What more can I render than to thank you Lord.


Abstract


The Nigerian capital market came into prominence when the Nigerian enterprise decree, which is also known as the indigenous degree was promulgated in 1972, and amended in 1977. The public became aware of the importance of Securities Avenue for industrial development, especially through the introduction of privatization and the N25 billion capital base for banks. Market in the developing economy was stock exchange established in 1961 as Lagos stock exchange in 1977, was used as a case study.

It was found out that Italy market despite some problems or shortcoming have helped in development of industrial sector with the involvement of Nigerian stock exchange market, which have been machine in for mobilizing private and public savings and making them available for productive investment through share and stocks. Also it has provided a meeting place for dealing members to buy and sell existing stocks and shares which is an avenue for raising new capital for industrial development.

The statistics were gotten through the use of primary data and secondary data where inferences were drawn to arrive at a given conclusion.


Table Of Contents


  • Title page i
  • Approval page ii
  • Dedication iii
  • Acknowledgement iv
  • Abstract v
  • Table of contents vi

Chapter One

  • 1.0 Introduction 1
  • 1.1 Background of the study 1
  • 1.2 Statement of the problem 2
  • 1.3 Objectives of the study 3
  • 1.4 Research of the questions 4
  • 1.5 Significance of study 5
  • 1.6 Scope of the study 5
  • 1.7 Limitations of the study 6
  • 1.8 Definitions of terms 6

Chapter Two

  • 2.0 Literature Review 9
  • 2.1 Introduction 9
  • 2.2 Historical background of Nigeria capital market 10
  • 2.3 Challenges of capital market 17
  • 2.4 Operations of the capital market 20
  • 2.5 Control of capital market 24
  • 2.6 The impact of Nigeria stock exchange in the economy 28
  • 2.7 The capital market in the mobilization of fund for Industrial development 30
  • 2.8 Comparative analysis of money & capital market 32
  • 2.9 Objectives of money and capital market 33
  • 2.10 Instrument of money and capital market 35

Chapter Three

  • 3.0 Research Design and Methodology 39
  • 3.1 Introduction 39
  • 3.2 Research design 39
  • 3.3 Source/method of data collection 40
  • 3.4 Population & sample size 41
  • 3.5 Sample techniques 42
  • 3.6 Validity and reliability of measuring instrument 43
  • 3.7 Method of data analysis. 44

Chapter Four

  • 4.0 Presentation and Analysis of Data 46
  • 4.1 Introduction 46
  • 4.2 Presentation of data 46
  • 4.3 Analysis of data 47
  • 4.4 Analysis of research question 48
  • 4.5 Interpretation of result 53

Chapter Five

  • 5.0 Summary of Findings, Conclusion & Recommendation 56
  • 5.1 Introduction 56
  • 5.2 Summary of findings 56
  • 5.3 Conclusion 58
  • 5.4 Recommendations 59
  • Bibliography 62
  • Appendix 64

Chapter One


1.0 Introduction


1.1 Background Of The Study

The capital market is the market for dealings (that is lending and borrowing) in long term loanable fund. The market is the source from which industry obtains its capital for establishment, expansion and modernization and from which the government borrows on long-term basis for development purposes. It offers access to variety of financial instruments that enables economic agents to pool price and exchange risk. Through assets with affricative yields, liquidity and risk characteristics, it encourages savings in financial form.

This is very important for government and other institutions in need of long term funds and for suppliers of long-term funds who because of the nature of their liabilities undertake to maintain part of their assets in the relatively liquid form (Ekezie 1997)

According to Kanu N.O.N (2004) capital market refers to that market for the mobilization of medium and long term funds from the surplus units for allocation to the decifit unit of the economy.


1.2 Statement Of The Problems

Although the capital market has contributed significantly to the mobilization of funds for industrial development of the Nigeria economy, certain lingering problems still constrains its optional operations, they include:

Infrastructural Inadequencies:

This has resulted to delays in effecting transactions between issuing houses brokers, dealers, registrators, inventors, and their bank. The drag in the delivery service discourages many inventors who sometimes view with distrust their registrars and brokers within share certificates are undelivered or proceeds of share sold not delivered promptly. Also infrastructural limitations insulate many investors especially those in the rural areas from broker dealer there by, trading in securities which would have aided development

  • Ignorance also on the part of most members of the Nigerian public as to the meaning of shares and stocks as well as benefits derivable from market operations.
  • Reluctance of the Nigerian businessmen to go to public for the fear of losing control of family business.
  • Macro-economic instabilities and high cost of raising funds in the market.
  • Political instability which makes returns and premiums uncertain and there by discouraging prospective investors both local and foreign.

1.3 Objectives Of The Study

Having the above problems in mind as militating against the development of capital market, the purpose of this study is to determine

  1. Contribution of the capital market to the economic growth.
  2. The possible strategies to enhance the efficiency of the capital market.
  3. The relevance or usefulness of Nigerian stock market in the developing economy.

1.4 Research Question:

  1. How can capital market provide a local market for borrowing and lending of long term funds for the economic development of Nigeria?
  2. Is it possible for the lack of public awareness to militate against the realization of the potential of the stock market fund mobilization?
  3. How can the capital market help in the mobilization of fund for industrial development of a country?
  4. Which instrument is more often used by the capital in raising fund?
  5. What ways do you think that the Nigeria capital market will be improved?

1.5 Significance Of The Study

This study will be of importance to individuals, private and public companies, financial institutions, government parastatals, as it will enable them to understand how capital market help in the mobilization of fund for industrial development. The part of stock exchange in mobilizing the funds needed for investment by them.
This is important also because it will encourage the investors to invest into the stock market with the full assurance that their investments are intact.


1.6 Scope Of The Study

This research work resolves on the Nigerian stock exchange and how it aids the capital market in the mobilization of fund for industrial development. It is important to note that the capital market is not a single entity; rather it is a network of specialized financial institutions that In various ways brings together suppliers and users of capital which will be fully emphasized in this study. It will also examine the various regulatory bodies of the capital market specially the Nigeria stock market, its operations and impact in the economy generally.


1.7 Limitations Of The Study

In the case of this research I encountered few constraints; the reluctance of some respondents to volunteer information because they did not believe the assurance given to them that the data collected were purely for academic purposes. Other limitations include financial and time constraints as this report writing was combined with attending of lectures.


1.8 Definition Of Terms

Some terms or concepts have various meanings depending on who or how it is used.
The terms in this study are used in the following context.

Capital Market:

It is used interchangeable with the stock market which is an integral part of the countries, financial system where money securities are bought and sold.

Share Holder:

A share holder is one who holds a share certificate, who has a legal title to shares. It is also called or referred to as stock holder.

Share Index:

It is made up of a number of bonds, stock or share selected from a list of various traders or business with their market price added together.

Speculation:

It is the buying and selling of goods with the objective of gaining from differences in prices.

Stage:

One who speculates on the stock exchange by subscribing to a new issue with the hope of selling his allotment at a profit as dealings.

Bear:

an individual who sells securities that he does not own or which he does not want to deliver in the hope that they can be repurchased at a profit before delivery has to be made.

Common Stock:

It is a term for equity or common stock.

Broker:

An intermediary who buys or sells shares on behalf of a client.

Securities:

They refer to various promissory documents adopted as evidence of claim in the market.

Primary Market:

It is where securities are offered for sale in the public from the issuer for the first time.

Secondary Market:

It is where people or investors can buy or sell previously quoted securities can get their money back for alternative uses.


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How to nail it on the head during your project defence


You are through with writing that project. Now what?

You have found yourself at that point where you have to defend what you have written. Of course you have to stand in front of your supervisor and other literary personalities to prove that you know what you wrote in your project paper. Unfortunately, the more you think about it, the more it looks like you are about to face a legion. It is not a war. But the emotion of dread welling up inside of you makes it look like one. So now you are asking yourself questions.

  • How am I going to start?
  • I hope I will do well enough to get an A.

You really want to nail it, but you need to come to terms with exactly how to get everything in perfect control. Especially your emotions of fear that seem to make a wreck of you every time you think about public speaking.
So here is the deal. I want to help you avoid that feeling that would ruin your precious moment if you dare to let it. And we are going to do it together.

I am going to highlight some very important tips to help you get in control for you to be comfortable enough to move from that feeling of DREAD to CONFIDENT; and making an awesome Impression for that great rating your supervisors should be giving to you so freely.

Consider these tips as you prepare for your defence. We will be taking them one after the other so here we go.


Watch Your Body Language And Keep It Confident:

Can you tell that a person is falling apart if they look confident? … If I can second guess you rightly, am sure you answered no to that question. Remind yourself that you need to come out that way. Now this might seem like a huge big deal when you are dealing with the foreboding. Maintaining a poise of confidence is very important. So find your most comfortable position, sitting or standing and draw up your body. You must exude confidence. It is something you need to do for yourself. People can only see what you allow your body language to show. So you must endeavour to put that out. Remember the story of David and Goliath? … At the end of your defence day, you want to be David.


Dress In Your Most Comfortable And Impressive:

Am sure this one is a no brainer. However I must highlight that you choose comfortable pieces. You don’t want to look so good and yet look like you were forced to wear something that does not belong to you. It’s great to ensure that as impressive as your clothes are on you, that they are also very comfortable.


Speak With Authority:

Going hand to hand with that aura of confidence is your most powerful asset:your words. If you look that confident, your words must not come out like whimpers. To be able to pull this off, you definitely need to speak as deliberately as possible in expressing yourself. Let them also hear what they see.


Use, Your Gestures:

I have often found this to come to my rescue in dealing with shyness and conveying my confidence. Usually it gives you an edge to also drive home your point. You must, however, ensure that you do not over use it. It doesn’t mean that your hands should be flying all over the place. That would be absolutely unnecessary. If you do this well, after a while you will realize that you are not as self-conscious as you used to be at the very start. For most situations, it would have completely disappeared altogether; leaving a really confident you talking.


Have A Good Opening And Closing Line:

Make sure you have perfected a good opening line. You should also be armed with a good closing line too. Try and rehearse it to a friend. If for the first time you presented it, your friend does not say “wow, that’s beautiful” or something like that; just know you need to keep refining it until you get the perfect line. Both opening and closing lines will go a long way in how impressed your panel gets to rate you high.


Make Sure You Know Your Work:

Certainly you should understand how important it is to know your own work from start to finish. Not having in-depth knowledge of your own work is tantamount to a suicide mission. Why should you kill yourself?
When all is said and done, this is what you came to defend in the first place. You should know your work from A to Z.


Prepare For The Questions:

Now this part is truly essential. You must be sure you do not floor all the good work you did on your presentation by not answering correctly. You must pay attention to the questions you are asked to be sure you will give the right answer. Many people get it wrong at this stage and spoil their good presentation. When you do not understand any question do endeavour to ask the person to expatiate what they mean before you answer.


These tips are by no means exhaustive, but applying these tips will give you some necessary advantage you need for a great outcome. Of course that outcome would mean that you eventually earn all your points on this project.

SAMPHINA

SAMPHINA

Samuel Obiora Blessed is the CEO and founder of samphina.com.ng a.k.a Nigeria Students Media, the youngest engineering graduate of Federal Polytechnic Nekede in 2017 and the engine brain behind this great platform. He is the man behind the scene, filled with many potentials. A musician as well as a developer with the interest of Nigeria students at heart. If you need a professional website, contact him via WhatsApp or phone call @ 08143831497 to get the best.

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