HISTORICAL BACKGROUND OF THE NIGERIAN STOCK EXCHANGE IN THE ECONOMIC DEVELOPMENT OF NIGERIAN
The need to mobilize financial resources by government can not be over emphasized as the country development need for outstripped
Its revenue generation capacity. Experience in Nigerian has shown that revenue from taxation and statutory allocation alone are not sufficient to finance the current and capital expenditure of most government of the federation. It is therefore imperative for them to look for other sources of capital inflows to close their resources gaps.
As a matter of fact the need to finance growing budgets deficits from 1958 and the deteriorating balance of payment form the year 1950
Were some of the consideration for government support of the business community in setting up the lagos stock exchange in 1977 the stock exchange was also inspired by government due to the understanding that a viable capital market could be relied upon to finance industrial development in particular and nation economic growth in general on the other hand the money market represent the short-term end of the nation. Financial market comprising essentially
Short-term loans and obligations with maturely of about a year it is an institutional arrangement through which individuals and institution with temporary surplus funds meets borrowers who have temporary funds shortages. The money market to manage liquidity. Therefore, one of the working capital needs of companies and to provide government with short-term funds in lice of tax collection.
The capital market on the other hands is the section of the financial statement which provides medium of business and government. Reusing of funds in the capital market makes the construction of factories, office building, highway, bridges and acquisition of machine possible an efficient capital market they are mobilizes the nations capital resources and allocate them for the overall growth of the economy. If capital resources are not provided to these economic arrears, especially industries, where demand is growing and which are capable of increasing production and productivity the rate of expansion of the economy will definitely suffer.