Towards developing a vibrant bonds market in Nigeria

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Date

2002-03

Journal Title

Journal ISSN

Volume Title

Publisher

Central Bank of Nigeria, Research Department.

Abstract

Sustained long-term economic growth development requires investment which, in turn, is dependent on long-term finance. However, the bulk of finance available in Nigeria has been short-term bank finance. Finance from the capital market, though rising, has been low. The paper reviews the performance of a segment of the capital market, the bonds market, in order to understand its poor performance and put forward suggestions for its revitalization. Macroeconomic as well as structural factors have been responsible for the poor performance. The major suggestions for revitalizing the market are improvement in macroeconomic environment, structural and institutional reforms, including providing rediscounting facilities, enhancing government patronage, rating of bonds and improving surveillance of market operators.

Description

Keywords

Bond market, Treasury bonds, Corporate bonds, Inflation, Macroeconomic stability, Nigeria

Citation

Odoko, F.O, (2002). Towards developing a vibrant bonds market in Nigeria. Economic and Financial Review, 40(1), 1-24.