Macroeconomic Determinants of Stock Market Performance in Nigeria


  • Noruwa Ikponmwosa Abu
  • Uche Ibekwe


Stock market, All-Share Index, ARDL, Macroeconomic Variables


This study analyses how macroeconomic variables affect the Nigerian stock market's
performance. The All-Share Index is the dependent variable, while the independent variables are
the gross domestic product growth rate, interest rate, inflation rate, and exchange rate. The
researchers used secondary time series data from 1999 to 2021 from the Central Bank of Nigeria
(CBN) Statistical Bulletin. The data analysis relied on the autoregressive distributed lag (ARDL)
technique. The study found that interest and exchange rates did not significantly affect the
Nigerian stock market's short- and long-term performance. In contrast, the inflation rate and
gross domestic product growth rate significantly and negatively affected the Nigerian Stock
Exchange's stock market performance in the short and long term. Therefore, the study
recommends that governments should implement appropriate measures by reducing money in
circulations to combat inflation and maintain price stability to enhance the Nigerian Stock
Exchange's performance.