Fixed Income Securities and Capital Market Growth Performance in Nigeria
In an analytical and empirical manner, this study investigated the performance of capital market growth in Nigeria in relation to fixed-income securities. The primary research objective was to assess the performance of Nigeria's capital market is influenced by fixed income securities. The study also had specific objectives, which included examining the influence of government bonds, interest rates, and Treasury bills on market capitalization in Nigeria. Secondary data covering 18-year period (2004-2022) were collected from various sources. The research design employed was ex-post-facto, and multiple linear regression analysis was used to determine the statistical significance of the independent variables. The results of the study revealed that the coefficient of federal government bonds (FGbond) had a positive and statistically significant impact at both the 95% and 99% confidence levels. Specifically, a 1% increase in federal government bond holdings, with all other variables held constant, led to a significant 3.470% increase in stock market capitalization in Nigeria. Conversely, interest rates showed a negative but significant impact. A 1% increase in interest rates, with other variables held constant, resulted in a 15?crease in stock market capitalization over the specified timeframe. Treasury bills (T-bill) had a positive but insignificant effect, with a 1% increase in T-bill holdings, keeping other variables constant, resulting in a 1.305% insignificant increase in stock market capitalization during the studied period. Based on these findings, the study recommends that monetary authorities should encourage greater investment in bond facilities by private individuals and corporate entities. Keywords: Fixed Income Securities, Capital Market Growth,…