Stock Market and Agricultural Sector Performance in Nigeria

Abstract

This research looks at the agriculture sector's success in Nigeria from 1995 to 2024 and how the stock market affected it. Studying events after the fact, the research uses secondary data culled from the Statistical Bulletin (2024) of the Central Bank of Nigeria. The dependent variable in this stock market activity model is agricultural sector production, while the independent variables are market capitalisation, All-Share Index, and new issues. The results show that agricultural output is positively affected by market capitalisation, All-Share Index, and new issues, according to time series econometric methods. Additionally, the study verifies that there is a long-run equilibrium connection between stock market performance and agriculture sector performance, with a speed of correction from short-run disequilibrium of around 70%. Additionally, changes in stock market factors account for almost 63% of the variance in agricultural production, according to the coefficient of determination. The study found that the stock market greatly improves the performance of Nigeria's agriculture industry. Investor education programs and a loosening of participation restrictions by regulatory bodies are two of the measures proposed to entice additional investors, particularly in the agriculture sector. Further, encouraging stock market involvement and driving development in agricultural investments requires a more robust relationship between stakeholders and the government.