THE IMPACT OF CAPITAL INVESTMENT IN NIGERIA ECONOMY. A RESEARCH PROJECT MATERIAL ON BANKING AND FINANCE
1.1 STATEMENT OF THE PROBLEM AND PURPOSE OF THE STUDY
Inactivity and not living up to expectation since inception had been the Nigerian capital market critism (by Adam smith in his book “the injury). This is because an active capital market is supposed to mobilize saving effectively for investment purposes. It could be recalled that capital investment is possible in all ramifications if there is a well articulated capital market to help business communities.
Purpose of the study
In the light of the above problems leading to slow rate of capital investment when compared with 1stand 2nd world countries, the purpose of this study is to investigate through the extent of the Nigerian capital investment and the impact so for in the Nigerian economy with a view to suggesting for improvement.
1.2 RATIONALE OF THE STUDY
It is a known fact that for meaningful economic transformation of a country her capital investment must be virile and the economic strength of nation is measured according to how active or effective her capital is / or are performing its purpose function.
the Nigerian economic is characterized by “a low rate of industrialization, low rate of productivity import dependence visions circle of poverty” which are all characteristics of under development according to Karl Max.
1.3 SIGNICANCE OF THE STUDY
The significance of this study will therefore be of benefit to the government and the central bank for them to plan, initiate programme and actions and a sound frame work on government monetary policies to sustain the economy.
This institutional operators of the money and capital markets, tother financial institution like commercial banks, non – banking financial societies like cooperative societies, insurance and reinsurance companies, business communities, government companies and parastatals, including future researchers in the academic filed who will like to share this world of experience will find this project work beneficial.
1.4 BACKGROUND OF THE STUDY
The lack of proper institutional from work to absorb saving could result in saving being channeled into unprofitable ventures.
However, as the guest for economic development becomes urgent, the need for an organized and well developed capital market arise to encourage savings and investment and to provide opportunity for saves to participate in the ownership and / or returns of business enterprises which will encourage more capital investment.
G.A Akamiokhor in this contributions said that “in ensure that capital is efficiently allocated between competing ends and also to channel saving in to investment for economic growth and development. It is important to develop a well co ordinate capital market and investment will the financial structures.
1.5 DEFINITION OF PLAN
The capital market can be defined according to Dr.Mrs. Toyin Philips, as “the complex of institution and mechanisms where by medium and long term funds are pooled and made available to business, governments and individual and whereby instrument already outstanding are transferred”.