Macroeconomic Determinants of Stock Market Performance in Nigeria

Abstract

This study examined macroeconomic determinants of stock market performance in Nigeria, using exchange rate, interest rate and inflation rate as proxies for the independent variable while all share index was used as proxy for the dependent variable. The ordinary least square (OLS) model was used for the analysis covering a period of ten years from 2015 to 2024. The OLS findings revealed that of the tested variable determinants, only exchange rate had a significant positive effect on all share index. Interest rate was negative and insignificant while inflation rate was positive and insignificant. It was recommended that the CBN should consider policies that will lead to a sustainable exchange rate in the country; the CBN should continue to pay particular attention to interest rate stability as one of the key macroeconomic objectives; and the government should continue to vigorously pursue policies aimed at taming the domestic inflationary pressures.