Drivers of Stock Market Development in Nigeria: Does Openness Matter?

The stock market represents a major source of long-term funds. However, the Nigerian lacks depth due to weak regulatory system and legal framework. Extant studies have shown that both institutional quality openness are enablers market. An analysis effects on development from 1996 2021 is therefore crucial. Auto Regressive Distributive Lag (ARDL) method used analyze data World Bank databases Lane-Milesi Ferreti index, with results showing has positive significant impact in Nigeria. Meanwhile, market, quality, related over long term based ARDL bounds test. A further finding revealed Nigeria’s banking sector exchange rate had (negative) respectively. Additionally, liquidity contributed This study came conclusion an enabling Nigeria could be strengthened by interaction openness. concludes strengthening governance institutions through creation appropriate framework necessary ensure political stability absence violence country’s system. Besides, government really needs grant autonomy agencies charge tackling corruption enable them enjoy simultaneous Monetary authorities should also improved credit for domestic investment activities.