ABSTRACTA major engine of economic growth and development of any nation isthe stock market. It impacts positively on the economy by providingfinancial resources through its intermediation process for financing longterm projects. These projects could be promoted by governments orprivate institutions. The analysis scope covered a period of twenty-fiveyears spanning from 1986-2010. The econometric methodologyadopted is the Ordinary Least square method (OLS). Using theindependent variables of market capitalization, value of trade, inflationrate and exchange rate and the dependent variable of gross domesticproduct, this study analyzes the impact of the stock market on theNigerian economy. In conclusion, the result shows that the stock markethas a highly significant impact on the Nigerian economy. Hence,without an efficient stock market, the economy may be starved of therequired long term fundsfor sustainable growth and development.