INFORMATION TECHNOLOGY AND
CAPITAL MARKET DEVELOPMENT: A CASE STUDY OF THE NIGERIAN STOCK EXCHANGE
Introduction
The
Nigerian economy is aiming to have the sustainable growth path. Through the
development of their information technology and enhancement of the capital
market in their stock exchange the government can adopt the comprehensive progress.
Nigeria has a structural and sectoral macroeconomic policy reform and the main
strategies were (a) the liberalization of the external trade and payment
systems, (b) the adoption of a market-based exchange rate for the domestic
currency ─ Naira, (c) the elimination of price and interest
rate controls, and (d) the reliance on market forces as the major determinants
of economic activity (Owoye & Onafowora, 2007). With the reformation in the
capital market the Nigerian Stock Exchange can use the monetary control and
instruments for implementing monetary policy in Nigeria.
Background of the Study
In
any countries across the globe, the government policies seek at achieving
relative macroeconomic stability. Basically, the stock market and information
technology changes in Nigeria are more than the objective of economic stability.
The efforts were actually based on the view that development and progress lies
on these factors. Different elements and principles in governance like the
adoption of new information technologies and enhancement of the capital market
in the Nigeria Stock Exchange were incorporated to improve the level public
awareness among the citizens. Moreover, the process of initiating or
re-introducing the rights of the people and their protection are promoted. Basically, through the social changes, the
Nigerian economy describes the flow of consumption and production in the
increase or decrease in trade, investments, and the national economic growth
(Edwards, 2002). This pattern proven that there is also an increase in the
commercialization and being supported by the creation of the marketing
practices that often lead to the exploitation of the natural resources if the
government and the people did not monitor the rapid changes – and their answer
to the sustainable development.
Statement of the Problem
The
researcher will investigate the information technology and capital market
development, in general. Specifically, the focus will be on development of
Stock Market in Nigeria and whether they contribute to the overall development
of the country. In this study, several
key queries will be sought. They are:
1. What are the existing changes in the
information technology and capital market development in accordance to the
country’s overall development?
2. What
are the implications of information technology and capital market development
in Nigeria?
3. Are information technology and capital
market development in the Nigerian Stock Market an effective way of alleviating
poverty in Nigeria?
Purpose of the Study
The
purpose of the study is to provide a helpful research material about
information technology and capital market development in Nigeria as a form of
contribution to the bulk of studies conducted on the practices of Nigerian
Stock market. This material should
educate the readers about the impacts of information technology and capital
market development to the progress of the Nigerian economy. This paper might
trace possible barriers that prevent Nigerian Stock market to achieve their
goals, but might also provide solutions on how those barriers can be overcome.
The dissertation could also present the issues and concerns on the problems of
poverty that confront the citizens of Nigeria in order to come up with sound
solutions to the problems of this particular society.
Methodology
The
suggested method in the study is the use of secondary information coming from
the economic reviews of the country. It is a good start if the study can
determine the recent reforms and successful monetary policies from the previous
years to link the present situation of Nigeria with its literature on its stock
market policies and information technology development. The materials or
sources that can be use are the International Monetary Fund (IMF) Reports,
Nigerian Treasury Bills (NTBs), Central Bank of Nigeria (CBN), and
participating Nigerian banks to organize the ideas regarding the measurement of
money against inflation.
References:
Edwards, A. (2002). Nigeria: Country Profile, Johannesburg Summit [Online] Available
at: http://www.un.org/esa/agenda21/natlinfo/wssd/nigeria.pdf [Accessed
09 Feb 2011].
Owoye, O., & Onafowora, O. (2007). M2
Targeting, Money Demand, and Real GDP Growth in Nigeria: Do Rules Apply?, Journal of Business and Public Affairs
1(2) [Online] Available at: http://www.scientificjournals.org/journals2007/articles/1229.pdf
[Accessed 09 Feb 2011].
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