CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

        Broadly speaking, there are two kinds of chance revolutionary or discontinuous change which is gradually and common (suble) yet dynamic.

        It is this latter form of change that is advocated for the development of Nigerian securities market vis-avis the capital market as a means of sourcing funds for the public sector.

        Right from the day Nigeria returned their independence till date, the country has been searching for economic change and development that would bring better living for her feering population.  This economic change and development could only be made possible by the public sector with enough of finance for its long-term project.

        However, comes the vital role, which the Nigerian capital market plays in the development of the nation.  The public sector today knows no bound.  What was seen as the public sector twenty years back will be grossly inadequate of considered as the public sector of present day Nigeria.  Due to this seeming limitless nature of the public sector which embraces local, state and federal governments.  The expenditure of these various government are always on the increase.  But with the privatization and commercialization programme of federal government parastatals had either it runed down or put to an end to.

        The deregulation of the capital market is meant to bring about sanity to the operation of the capital market to foster the much needed role of providing capital or funds to the public sector for its financial obligations.

STATEMENT OF THE PROBLEM

        In the course of this study some problems associated with the Nigerian capital market have been identified.

        These includes: