University of Nigeria

Author Research Publications

ODENIGBO, Didacus D.

PG/MBA/98/45430
The Impact of Information Technology on
Title

Nigerian Capital Market Period of Review:

1980 - 1999
Faculty

Business Administration
Department

Banking and Finance

Date

May,2000

Digitally signed by Vincent Ekwelem

Signature

DN: CN = Vincent Ekwelem, C = US, O = University of

Nigeria, OU = University Library
Reason: I have reviewed this document
Date: 2008.11.04 15:07:17 +01'00'
 THE IMPACT OF INFORIMATION
TECHNOLOGY
ON NIGERIAN CAPITAL MARKET
-
(PERIOD OF REVIEW: 1980 1999)

ODENIGBO DIDACUS D.
UNEC/PGMBA/98/45430

DEPARTMENT OF BANKING & FINANCE

FACULTY OF BUSINESS ADMIN;
UNIVERSITY OF NIGERIA, ENUGU CAMPUS (UNEC)

PARTIAL FULFILMENT OF THE REQUIREMENTS

FOR THE A WARD OF MASTER OF BUSINESS ADMIN.
(MBA BANKING & FINANCE)
 L

APPROVAL PAGE

I declare that this Research work is an original study undertaken and

accomplished by me; having not been undertaken before and/or submitted

for the award of Diploma or Bachelors Degree or any other tertiary

certificate in any Nigerian Higher Institution.

The research project has been approved as meeting the requirements for the

award of the Master of Business Administration Degree in Banking and

(Author)

Dr. B.E, Chikeleze Date

(Supervisor)

c9 / 6 --5-
0 1
Mr O.E. Aneke Date
Head of Department
 This Dissertation is dedicated to:

God the Almighty, The Shekinah Glory, My Mother, Beatrice Odenigbo

and My Eldest Brother, Engr. M. C. Odenigbo.
 A CKNO WLEDGEMENT

In view of the various' contributions made by some people towards the

success of this work, it is my wish to specially mention their numes as follows:

1. My good and humble project supervisor, Dr. B. E. Chikeleze whose assistance

and directives contributed greatly to my successful completion of this work.

2. I thank my dedicated Head of Department, Dr. Ayafo who moderated and

approved this research topic for me.

3. I am equally.very grateful to Mr. P. C. Mgboh, a computer analyst who

guided me with professional advises in area of information technology
through all stages of this work.

4. Special thanks to Miss Ifeoma Obinweke for her moral support and initiating
the steps through which I found myself into MBA Programme.
b
5. Also remembered are: Mr. Alan Oyesanya a Computer Software Engineer for
his professional contributions.

(b) Mr. R. C. Aligwe of CBN Enugu for introducing me to the CBN library.
(c) Mr. Eddy Okorongwu a professional colleague for his immeasurable
advises.
(d) Mr. Emma C. Ofordu a personal friend, for his moral support.
(e) Mrs. N. A. Onah, oflcial colleague for her support.

6. Very important regards to vibrant Miss Mabel Sunday of Diamond Sentinel

Nig. Ltd., 100 Zik Avenue, Uwani, Enugu, who typesetted the project report.
 ABSTRACT

Capital market is where savers and users of funds interact and these
interactions constitutes a major aspect of the environment for investment
decisions. In view of this, the researcher aims at introducing capital market and
it's operations in Nigeria and the impact so far made by information technology
towards it's growth and development.
However, some problems are identfiable with capital market development
in Nigeria and these problems as stated below bothers on information
inadequacies. Some of these challenges are historical, institutional and structural
and they include:
The problem of imparting depth and breadth to the market. By breadth, I
mean, the number and range of securities which are available for trading and
by depth, I mean the volume and value of such securities.
Just as the money market, the Nigerian Capital Market is dominated by
Government Securities in value terms. For example, government securities
accounted for 88.7% of total value of transactions in 1989 and has continued
in that trend over the years. b
The Nigerian capital market is characterised by infrastrucrural inadequacies.
There exists administrative pr~blemscharacterised by bureaucralic delays
and oflcial redtapism in effecting transactions between issuing houses,
broker-dealers, registrars, investors and their banks due largely to the
inadequacy ofpostal and telegraphic services.
Ignorance on the part of most members of the public as to the meaning of
shares an stocks as well as benejts derivable from the capital market.
Reluctance of most Nigerian businessmen to go public for fear of losing
control of family business.
Problem of imprompt information, incorrect information and poor timing of
investment in the capital market.
In view of these problems, the research work focuses on the operations of
capital market in Nigeria, the impact of informarion technology in the
development of the market and the trend analysis for the period: 1980 - 19W.
These jndings enables the researcher appraise and evaluate the effect on the
nation S macroeconomic stability and suggest probable measures to take for
enhancement of effective capital market operations in Nigeria through enhanced
information system.
For proper analysis, the work is broken down into j v e major parts with
the j r s t as the introductory part, introducing background to the study, statement
of problems, objective of the stuu'), and it's signijkance. This part also
incorporates, the dejinition of terms.
 Chapter two projects the literature review which deals with review of
related texts already published on the research topic.
Chapter three exposes the reader to the method employed in currying out
the research and these includes the design and sources ofdata, samples, methods
of investigation and validation of research instrument.
Chapter four will anulyse the data collected as shown in chapter three.
Finally, fiflh part being the concluding part or chapter incorporutes the
findings and recommendations.
 TABLE OF CONTENTS

Cover page
Approval page
Dedication
Acknowledgement iv
Abstract v
Table of contents vii

CHAPTER ONE
1 .O Introduction
1.1 Background of the Study
1.2 Statement of Problem
1.3 Objective of the Study
1.4 Significance of the Study
1.5 Hypothesis
1.6 Scope of Limitation of the Study
1.7 Definition of Terms
1.7.1Financial System
1.7.2 Financial Market
1.7.3 The Money Market
1.7.4 The Capital Market
1.7.5 The Nigerian Stock Exchange (NSE)
1.7.6 The Securities and Exchange Commission (SEC)
1.7.7 Market for Negotiated Finance
1.7.8 Securities Market
1.7.9 New Issue Market
1.7.10 Secondary Market
1.7.1 1 Information
1.7.12 Management Information
1.7.13 Information Technology
1.7.14 Wordprocessor
1.7.15 Linked Systems
1.7.16 Intelligent Teleprinters
1.7.17 Micro Computers
1.7.18 Fascimile Transmission (FAX)
1.7.19 Computer Network
1.7.20 Internet
1.7.21 Wide Area Network (WAN)
1.7.22 On-Line (Adverb)
1.7.23 Second Tier Securities Market
1.7.24 Over the Counter Market
1.7.25 Issuers
1.7.26 The Issuing Houses
1.7.27 The Underwriters
1.7.28 Stockbrokers
1.7.29 Jobbers
1.7.30 ATM
1.7.3 1 Cybernomics

CHAPTER TWO
2.0 Literature Review
2.1 Reform of the Nigerian Capital Market
2.2 The Role of Capital Market Operation in the Privatisation Process
2.3 Conceptual Issues in Stimulating Industrial Development
and Economic Growth through Capital Market.
2.3.1 The Focus of the Capital Market
2.3.2 The Relationship between the Capital Market
and Industrial Development
2.3.3 Significance of Public Issues or Quotation
2.3.4 Institutional Arrangements for Effect Public Issues
in the Capital Market
2.4 Procedure for Fund Raising in the Nigerian Capital Market
2.5 Available Opportunities in the Nigerian Capital Market
2.6 Performance of Quoted Companies in the Nigerian Capital Market
2.7 The Effect of Advanced Technology on Communication
2.7.1 On the Economy and Biz - International Markets
2.7.2 On Securities
2.7.3 On Society
2.8 When Worlds Collide
2.9 The Information Revolution and the Global Economy
2.9.1 The Hitchhiker's Guide to Cybernomics
2.9.2 Making Waves
2.9.3 A Shrinking World
2.9.4 The End of Work
2.1 0 Information TechnologylOverload and the Nigerian Environment
2.1 1 TimeIValue Factor of Information
2.12 Need for Information Technology in the Development
of the Nigerian Capital Market.
2.13 Information Audit and the Nigerian Capital Market Development
2.14 Knowledge Economy Vs Information Literacy 47

CHAPTER THREE
3.0 Research Design and Methodology
3.1 Sources of Data
3.1.1 Primary Data
3.1.2 Secondary Data
3.2 Method of Investigation
3.2.1 Interview Questions and Presentation
3.3 Samples Used
3.4 Validation +ofResearch Instrument

CHAPTER FOUR 54
4.0 Presentation, Analysis and Interpretation of Data 54
4.1 Presentation of Data 54
4.1.1 Component Bar Chart 59
4.1.2 A Pie Chart 60
4.2 Data Analysis 6 1
4.2.1 The 'Buy and Hold' Attitude of Nigerian Investors 61
4.2.2 Capital Gains and Security of Investment Appear More Crucial 62
4.2.3 The Number and Range of Securities and Volume and Value of 62
4.2.4 Infrastructural Facilities Available 62
4.2.5 Infrastructural Limitations 63
4.2.6 Screen Based Trading 63
4.2.7 Depository Transfers and Clearing System in Place 63
4.2.8 Unorthodox Perception of Stock Valuation 63
4.2.9 The Low Trading Volume 64
4.2.10 Information Technology does not Play much Role 64
4.2.1 1 Analysis of Tables XI and XI1 64
4.3 Testing of Hypothesis 65
4.3.1 The 'Buy and Hold' Attitude of Nigerian Investors has helped
the Development and Growth of the Nigerian Capital Market. 66
4.3.2 The Problem of Imparting Depth and Breath to the Market
has not been a Major Problem Facing Prospective Investors
into the Nigerian Capital Market 67
4.3.3 The Absence of Screen Based Trading in Stocks and Shares
does not Affect the Development of the Market. 67
4.3.4 Infrastructural Inadequacies does not Frustrate the Appropriate
Technology to Solve the Nigerian Capital Market Problems 68
CHAPTER FIVE
5.1 Summary of Findings, Recommendation and Conclusion
5.1.1 Summary of Findings
5.1.2 Recommendations
5.1.3 Conclusion.
Bibliography
 CHAPTER ONE
1.0 INTRODUCTION
1 . 1 Background to Study
The financial sector occupies a pride of place in the macro-economic
framework in that it has responsibility for organising and sustaining a sound
payments mechanism, as well as intermediating funds between the surplus and
deficit units, the ultimate objective being accelerated economic growth and
development. It is .against this background that the need to develop a nation's
financial sector has to be appreciated.
The possession of industrial capabilities by an economy is considered an
important potential for improved economic growth and development. Indeed, one
of the distinguishing factors between developed and developing economies is the
6
acquisition of industrial know-how. The benefits of appropriate industrial base for
an economy lies in it's combination of suitable technology, management
techniques and other resources in order to move the economy from a traditional
and low level of production to a more automated and efficient system of mass
processing and manufacture of goods and services. This explains why every
economy seeks to acquire appropriate industrial base or to expand it if the
economy is already industrialised.
Acquisition of industrial capabilities requires the blending of diverse
resources of which financial resources constitutes a critical factor. Since the
availability of such resources is a major influence on developing industrial or
other capabilities, every economy seeks avenues to acquire them. One of such
avenues is the use of capital market to raise fund. In Nigeria serious efforts to
explore this source of raising fund for development started in the 1960s and have
progressed steadily over the years.
 The Nigerian capital market is a major channel for mobilising long-term
funds. The main institutions in the market include the Securities and Exchange
Commission (SEC), which is at the Apex and serves as the regulatory authority of
the market, the Nigerian Stock Exchange (NSE), the issuing hoses and the stock
broking firms. The capital market is classified into two segments, the primary and
the secondary segments. The NSE evolved from the Lagos Stock Exchange which
commenced business in 196 1. Following Government adoption of the
recommendations of the financial system Review Committee of 1976, the NSE
was set up in 1977. It provides a mechanism for mobilising private and public
savings and making such funds available for productive purposes. The Exchange
also provides a means for trading in existing securities. To encourage small as
well as large -scale enterprises gain access to public listing, the NSE operates the
@
main Exchange for relatively large enterprises and the second-tier securities
market (SSM), where listing requirements are less stringent, for small and
medium scale enterprises. The major instruments used to raise funds in the market
include equities debentures, bonds and stocks.
Every Economy seeks to promote an effective capital market because, it
facilitates efficient allocation of financial resources. The use of the capital market
reduces over-reliance on the money market, assists in promoting a solvent and
competitive financial sector as well as fostering a healthy stock market culture.
The question now is, how does enhanced information technology help in smooth
operations of the capital market, particularly in a developing economy as Nigeria?
It is worthy of note that computing power and telecommunications
capacity are growing exponentially; individuals and organisations faced with new
information opportunities at an ever increasing rate all round the world. When we
look at the economic implications of information technology (semi conductors,
computers, software and telecommunications) and it's relationship with the forces
of globalisation, we will discover that the two are intimately linked. By reducing
the cost of communication, information technology has helped to globalise
production and financial markets. In turn, globalisation spurs technology by
intensifying competition and by speeding up the diffusion of technology through
foreign direct investment. Together, globalisation and information technology
crush time and space.
During the past two decades, the global network of computers, telephones
and televisions has increased it's information - carrying capacity a million times
over. Computing power doubles every 18 months or so in line with Moore's law
(named after Cordon Moore, the co-founder of America Intel). Today's $2,000
lap-top computer is many times more powerful than a $1Om mainframe computer
was in the mid 1970s. 25 years ago, only about 50,000 computers existed in the
b
whole wide world; now the number has rocketed to an estimated 140m and this
does not include any of the chips inside cars, washing machines or even talking
greeting cards. A typical car today has more computer processing power than the
first lunar landing - craft had in 1969.
In 1844, Samuel Morse launched the era of instant communication by
telegraphing the prophetic words: 'what hath God wrought'. In 1960 a
transatlantic telephone cable could carry only 138 conversations simultaneously.
Now a fibre-optic cable can carry 1.5m conversations. And very soon, a fibre the
diameter of a human hair will be able to transmit in less than a second the
contents of every issue. The Economist has ever printed in it's whole history since
the first one in 1843. No communication medium has ever grown as fast as the
internet. It already has (in 1996) an estimated 50m users worldwide, with the
number and a telephone can teleshop, telebank and telelearn 24 hours a day.
The facts and figures on globalisation are equally impressive. Over the
years or past decade, trade has been growing twice as fast as output and foreign
 direct investment three times as fast. More economies than ever before have
opened up their markets to trade and capital. In the global capital market, vast
sums of money whiz across borders at the touch of a button. Typical daily foreign
- exchange trading has soared to $1.3 trillion. Cross border transactions in bonds
and equities surged from 3% of America's GDP in 1979 to 16% in 1995.
Technology Buffs argue that information technology could prove more
significant than any previous technological revolution. George Gilder, an
American author and technology consultant, believes that information technology
is "the biggest technical juggernaut that ever rolled" and sees it as an engine for
growth and prosperity. In view of these facts about advancements in information
technology and global economic development, the researcher feels that it's a
worthwhile venture to x-ray so far in Nigeria's economic system, how information
#
technology have fared in capital market operations/development.

1.2 STATEMENT OF PROBLEM

In the course of writing this paper, the researcher identifies certain
outstanding problems associated with capital market operations in Nigeria as
earlier mentioned and these hindering problems still constrain it's optimal
performance. Some of these problems includes:
' I. The Buy and Hold Attitude of Ni~erianInvestors
Most investors in the market buy stocks as additions to their stock of
wealth and very rarely trade in such securities. Capital gains and security of
investment appear, more crucial than earnings and dividend motivation in the
stockholding behaviour of Nigerians. The inability of the market to influence
stockholders to trade stocks that are declining in value for those that are gaining is
a major factor that needs to be addressed in order for the market to be virile and
vibrant.
I1 Problem of Imparting Depth and Breadth to the Market
This is a major problem facing those interested in the emergence of an
active capital market in Nigeria. The interested investors in most cases find its
difficult to know the number and range of securities which are available for
trading and as well the volume and value of such securities.
111 Infrastructural Inadequacies
The transactions of the capital market requires adequate infrastructural
facilities in the form of Electricity, telecommunication network, postal services,
but these have been found to be grossly inadequate at present. This frustrates the
efforts to apply appropriate technology to solve capital market problems and
thereby delays efforts to join the club modernised capital markets.
@
There are delays in effecting transactions between issuing houses, broker -
dealers, registrars, investors and their banks due largely to the inadequacy of
postal and telegraphic services. The drag in the delivery service discourages many
investors who sometimes view with distrust their registrars and brokers when
share certificates are undelivered or proceeds of shares sold not received
promptly. Indeed, infrastructural limitations insulate many investors especially
those in the rural areas from broker - dealers, thereby restricting trading in
securities.
IV. Lack of Technological Know-How
There's no doubt that some improvements have been made in recent years
to acquire the technological base needed to modernise the Nigerian capital market
in terms of computerisation, linking with Reuter and the introduction of Central
Securities Clearing System (CSCS). These notwithstanding, a lot needs to be done
to promote screen based trading in share and stocks in which investors can deal
virtually in stocks from different locations in the country without physical
presence at the Stock Exchange. Besides, improved application of technology is
still needed to enhance depository, transfer and clearing systems in the market.
V Aversion to Ownership Dilution
This arises because indigenous businessmen prefer to keep their
businesses within the family. Most of the Nigerian businessmen are reluctant to go
public for fear of losing control of family business and this accounts for their not
seeking quotation in the Stock Exchange.
VI The Dormant Attitude of Investors
The dormant attitude of some investors in the market and the high level of
regulation of prices as well as thc unorthodox perception of stock valuation by
some investors have contributed to the slow and sometimes confusing price
movement of major stocks in the market. The fact that a large number of
shareholders fail to claim their dividends and share certificates even after massive
media advertisements betrays the low priority which investors have on stock
market transactions.
VII Low Trading Volume
The trading volume of the Nigerian capital market is considerably low and
this is attributed partly to the reluctance to sell shares and partly to other reasons
as insufficient securities to buy in the market. Generally, there is ignorance on the
part of most members of the public as to the meaning of shares and stocks as well
as the benefits derivable from capital market operations.
VIII High Costs of Raising Funds in the Market
The relatively high cost of raising funds in the market has made it difficult
for small and medium firms to enlist in the market. Some of these costs include,
0.7% of the amount being raised as application fee to the Exchange; Registration
fee of 1.5% of amount being raised; prospectus filing fee of N10,000 to the SEC;
Others are, issuing houses' fee (2.5% of proceeds, subject to negotiation):
brokerage fee of 0.5% of the proceeds, subject to negotiation; 1% Banks and
stockholders fee and 1% of amount to be raised for other service support
activities. Thc additional requirements of a company's profile in a prospectus,
publication of annual accounts and the holding of Annual General Meetings
(AGM) increase the cost of listing in the exchange. The discounted expected
receipts are therefore often far below the initial cost of listing by most medium
sized companies.

1.3 OBJECTIVES OF THE STUDY

Every economy seeks to promote an effective capital market with the
primary objective of mobilising long-term funds from surplus economic units for
the use of the deficit units for investment purposes and this facilitates an efficient
b
allocation of financial resources. It is in line with the above that the researcher
developed the underlisted objectives.
(a) To study and assess the capital market operations and management in Nigeria
for a period of twenty years wef 1980 to 1999 with a view to identifying the
associated problems and making recommendations for improved performance.
(b) To identify the contributions of information technology in the development of
Nigerian capital market so far and possible future expectations.
(c) To introduce ways and means of enhancing the nation's information system
for improved capital market operations.
(d) To highlight those facts that will enable the Government and the monetary
authorities including prospective investors in the Nigerian capital market
appreciate the study and apply it in future decision making
(e) To lay foundation for future researchers to develop more interest in the area of
information technology.
1.4 SIGNIFICANCE OF THE STUDY
This study is very useful because a major problem facing the Nigerian
monetary authorities is how to effectively manage the capital market for improved
operations. The use of the capital market reduces over-reliance on the money
market; assists in promoting solvent and competitive financial sector as well as
fostering a healthy stock market culture.
Due to the diverse nature and scope of operations including the
complexities of raising fund through the capital market, and for it to embrace the
growing requirements of investors in the market and offer qualitative services,
there is need for this study.
It is worthy of note that our system having been caught in the information
deluge from around the world, the market must look to a very novel approach to '
help it cope. There is therefore, the need for very big memory stores, very fast and
accurate retrieval systems and above all, the ability to sift and sort the information
before it drowns in it.
This research work is equally of great relevance in finding lasting solution
to the issue of ignorance of meaning of stocks & shares including the benefits
derivable from capital market operations among the members of the public.
Suffice to say that suggestions and recommendations of this study will
stimulate debate and objective analysis of the various policies so far adopted by
Government in the management of the Nigerian capital market.
1.5 HYPOTHESIS
In the course of executing the project work, the researcher deems it
necessary to formulate the understated hypothesis as basis of the study:
HO, The Buy and Hold' attitude of Nigerian investors has not
helped the development and growth of the Nigerian capital nlarket.
HOL The problem of imparting Depth and Breath to the market has been a
 major problem facing prospective investors into the Nigerian capital
market.

The absence of screen based trading in shares and stocks as part of

the Nigerian capital market operating system affects the development
of the market.
Infrastructural inadequacies (Telecommunication, Electricity, postal
services, computer services - Networking, Internet, etc) frustrates the
appropriate technology to solve capital market problems.

1.6 SCOPE AND LIMITATION OF THE STUDY

The scope of this study stretches to the operations of the capital marketpf
Nigeria, the developments along the line and the impact of information
technology on the market within the period 1980 - 1999. However, the researcher
deems it necessary reviewing the operations prior to 1980 (from the inception of
the market in Nigeria) and post inception of the market in Nigeria as there exists
some remarkable contributions of informatiun tech. of that period for clearer
understanding of this work.
Such materials used in this research work in the form of Books, Journals,
CBN Bullions, Briefs, Annual reports and statement of accounts, Economic and
Statistical reports and publications on information technology as well as capital
market can not in any way be said to be exhaustive on this topic.
However, it is important to note that due largely to time constraints
resulting from distortions, distractions and disruptions of academic activities in
the country and the nature of the researcher's programme, there could not be as
many interviews as would have been possible. The restrictive nature of the capital
market operations to operators, the fewness of stock exchange markets in the
country, poor communication network all contributed hitches along the line.
Nevertheless, efforts were made towards examining the topic effectively.

1.7 DEFINITION OF TERMS

In the course of writing this paper, there are some operational terms which
need be defined as they will be continually used through all the stages of the
report and it will enhance the understanding especially by non-professionals.
Some of those terms include:
1.7.1 Financial System - This consists of financial intermediaries, financial
markets, financial instruments, rules, conventions and norms that facilitate and
regulate the flow of funds through the marco-economy. The system is
b
controlled by the Government through the agency of the Central Bank which
supervises the activities of financial intermediaries and monitors adherence to
the government monetary and fiscal policies.
1.7.2 Financial Markets - These are the various facilities provided by the
financial system for the creation, custodianship and distribution of financial
assets and liabilities.
1.7.3 The Money Market - This is a segment of the financial market which
provides facilities for the exchange of financial claims and obligations whose
maturities vary from one day to one calendar year.
1.7.4 The Capital Market - This is that part of financial market that provides
facilities for transfer of medium and long term funds to various econon~ic
units. Capital market instruments have long-term maturities, hence most
financial activities which are necessary in the investment process are
consummated in that market.
1.7.5 The Nigerian Stock Exchan~e(NSE) - The secondary market is generally
called the Stock Exchange and it is the prime operational institution in the
capital market set up to:
(i) Facilitate purchase and sale of securities.
(ii) Facilitate dealings in government securities thus providing government
with funds for development purposes.
(iii) Protect the public from shady deals and practices in quoted securities
through jt's rules, regulations and operating codes.
(iv) Provide machinery for mobilising private and public savings and
making them available for productive investment through stocks and
shares, etc.
1.7.6 The Securities and Exchange Commission (SECl- Formerly called the
Capital issues Commission. The SEC as an Apex regulatory organ of the
capital market has the objectives of promoting an orderly and efficient capital
market in Nigeria by providing a conducive climate for savings and
investment necessary for economic development, ensuring fair and appropriate
prices for stocks and shares; and ensuring adequate protection of the investing
public.
1.7.7 Market for Negotiated Finance - This is the aspect of the capital
1.7.8 market where long -term funds are mobilised and transferred from one
economic unit to another without the use of securities. This is common with
finances provided by merchant banks and other development banks.
1.7.9 Securities Market - This is the aspect of the capital market which provides
facilities for the mobilisation and transfer of long-term funds that involve
securities.
1.7.10 New Issue Market - This could be referred to as primary market and it
provides facilities for the sale of fresh (new) securities. In other words, it is the
market for sale of new securities.
1.7.1 1 Secondaw Market - This is the market in which transactions in existing
securities are carried out. It is essentially a resale market for securities. In the
secondary market, the sale of bonds or equity stock could be carried out in the
secondary market.
1.7.12 Information - Is defined as something told or a news given or knowledge
of something.
1.7.13 Management Information - This focuses on the usefulness of
information in the management of a business organisation. Here, information
is to data what a finished product is to the raw materials used in producing,it.
In other words, data are information in it's raw and unprepared forins.
1.7.14 Information Technology - When we talk about information and then
technology, we are talking about an advancement in technology whereby data
is collected from the operating system, processed and stored as information by
the use o i computer.
1.7.15 Word processor - This is a computer equipment used in preparation and
editing of text.
1.7.16 Linked System - The concept of electronic mail is a practicality. Both
word processors and computers can be linked between offices, branches and
countries by telephone now increasingly using high capacity fibre-optic cable
or satellite.
1.7.17 Intelligent Teleprinters - This has also been developed. It is used in the
computer industry to indicate that the computer has been given a built-in
ability to analyse data and make decisions within given limits.
1.7.18 Micro-Computers - with micro-computers, document of all kinds can be
stored in large databases, recalled at speed, updated or erased. So, the job of
the filling clerk is being replaced by that of computer operator.
1.7.19 Facsimile Transmission (FAX) - This is a mechanism used in sending
pictures of documents (written or printed) as a series of digital pulses, just like
computer information. Transmission is fast and of excellent quality; and
technological innovations are improving it all the time.
Long-distance conferences can be held, using closed-circuit television,
computer transmission of data and facsimile transmission of complex
plans and diagrams, thus reducing the need for executives to travel long
distances, at great expense, for meetings.
1.7.20 Computer - Computer networking is interconnecting two or
4
more computers either in the same room or different buildings in the same or
different towns, allowing to exchange information.
1.7.2 1 Internet - Means international wide area network that provides files and
data transfer together with electronic mail functions for millions of users
around the world. Anyone can use the Internet and access any of the several
million computers that are linked by telecommunication.
1.7.22 Wide Area Network (WAN) - Is Network where the various terminals are
far apart and linked by radio, Satellite and cable.
1.7.23 On-line (Adverb) - Is terminal or device connected to and under the
control of a Central Processor E.g. the terminal in On-line to the mainframe.
(Adiective) is data or information that is available when a terminal is
connected to a central computer via a modem E.g On-line help = text screen
that explains how to use the application; On-line information retrieval =

system that allows an operator of an operator of an on-line terminal to access,

search and display data held in a main computer; On-line Storage = data
 storage equipment that is directly controlled by a computer; On-line system =
computer system that allows users who are on-line to transmit and receive
information; On-line transaction processing = interactive processing in which
a user enters commands and data on a terminal which is linked to a central
computer with results being displayed on screen.
1.7.24 Second Tier Securities Market - This is a security market created for
small and medium scale companies that may not meet the listing requirements
of the Nigerian Stock Exchange.
1.7.25 Over The Counter Market - This is where securities not listed the Stock
Exchange Market are sold.
1.7.26 Issuers - Are the companies that raise various types of funds mainly, long-
term funds through the issue of securities. 8

1.7.27 The Issuing Houses - Are financial intermediaries that specialise in

providing professional advice in the organisation, packaging and marketing of
Corporate Securities eg. Merchant Banks, Investment and Finance Houses.
1.7.28 The Underwriters - These are intermediaries that provide market for an
offer. they stand ready to buy the security where there is market failure or to
lend extra marketing support to ensure that the offer is fully subscribed.
1.7.29 Stock Brokers - These are agents i.e men on commission who execute
orders on the floor of the exchange on behalf of clients.
1.7.30 Jobbers - Unlike brokers, jobbers trade on their own account and assume
full risks of price fluctuations and receive no commission.
1.7.31 ATM - Asynchronous Transfer Mode - transfer of data without regular or
predictable timing signal.
1.7.32 Cybernomics - The scientific study of how information is con~municated
in machines and electronics devices in compassion with how information is
comn~unicatedin the brain and nervous system.
 REFERENCES

1. Francis 0 . Okafor, Investment Decisions; Evaluation of Projects and

Securities (London: Cassel Ltd; l983), p. 67.

2. Patrick Emekekwue, Corporate Financial Management; 2" Edition

(Zaire: Publication of B.A.S.E, Kinshasa; 1996), p. 22-24

3. G. C. Oko, CBN Economic and Financial Review Magazine; Vol. 28,

No. (June 1990): 49 - 50.
b
4. Benji C. Onyido, "Institutional Frame-work for Financial Sector
Development", CNB Bullion; Vol. 22, No. 3 (JulyISept; 1998): 28.

5. M. 0 . Ojo, "Developing Nigerian Industrial Capabilities

Through Public Quotations As a Key for Sustainable Economic
Growth", CNB Bullion; Vol. 22, No. 3 (JulyISept; 1998): 5.

6. CBN Briefs; (1996 series): 4 - 5.

7. The Economist, "Going Digital"; Revised Edition (London: Profile

Books Ltd. 58A Hatton Garden, 1998), p. 8 and 10.

8. Lisbeth A. Woolcott & Co, Information Technology - The Future (Hong

Kong: Macmillan Press Ltd; 1985), p. 268 - 270.

9. The Award English Dictionary, (England: Peter Haddock Ltd;

Bridlington): 178 and 191.

10. Okafor, Loc. Cit; 89 - 92.

1 1. Uche Modum, Management Information Systems, Analysis and Designs

(Nigeria: Enugu Fourth Dimension Publishing Co. Ltd; 1995), p.3.
 CHAPTER TWO
2.0 LITERATURE REVIEW
In considering developments in the system generally an institution by
institution analysis should be undertaken before elaborating on the overall system
performance. The Nigerian capital market has consistently recorded changes in
it's performance since inception. The developments in the market have led to the
successive changes in the Apex institution, the Securities and Exchange
Commission, from the Capital Issues Committee of CBN (up to 1973), to the
Capital Issues Commission (up to 1979) and to the current designation by virtue
of the recommendation of the Okigbo Commission. In addition, these
developments, have led to a rapid growth in the number of issuing Houses during
the last decade due to growing business in the market. In 1979 alone,,about 32
issues took place with an average of about three per month. No doubt, these were
enhanced by the promulgation of the Nigerian Enterprises Promotion Decree
1977. However, growth appears to have slowed down since then. Up to 1986,
there have been 98 issues valued at N2 billion. In the first quarter of 1989, the
total transactions on the Nigerian Stock Exchange is valued at $490.64 million, up
from N12.60 million in the corresponding period of 1988 and thus showing a
619.4 % increase. As at May 1989, there were 98 companies quoted on the Stock
Exchange with five others on the Second Tier Securities Market. However, inspite
of the above rosy picture, the market is far from realising it's full potentials and a
number of proposals have been made to increase participation in the market.
According to Alile (1989), fiscal incentives should be granted, publicly quoted
companies such that a lower tax rate is applied to their profits as done in Brazil,
Indonesia, etc so that more companies would be encouraged to go public.
2.1 Reform of the Ni~erianCapital Market
The capital market is the arm of the financial markets for raising long-term
funds to finance productive investments. The market comprises the primary
segment for raising new capital and the secondary market, otherwise known as the
Stock Exchange, in which existing securities are traded. The promotion of a
capital market in Nigeria is, therefore, intimately tied up with the objective of
accelerated economic growth and development. The Nigerian Stock Exchange
(NSE) is the prime operational institution in the Nigerian capital market. The NSE
which was reconstituted in 1977 from the Lagos Stock Exchange (established in
1961), presently has six trading floors in Lagos, Port Harcourt , Kaduna, Kano,
Onitsha and Ibadan. There is however a proposal for establishment, an Abuja
based stock exchange. The Securities and Exchange Commission, forn~erly
Capital Issues Commission is the Apex regulatory organ of the market with
responsibility for ensuring orderliness, fair play and transparency in market
operations. The Central Bank of Nigeria (CBN), as the apex institution in the
nation's financial system, monitors activities and developments in the market.
The objectives for establishing the Nigerian Capital Market among others
are to: mobilize long-term funds from surplus units for on-lending to deficit units
to ensure efficient allocation of scarce financial resources; reduce over-reliance on
the money market for industrial financing; promote a solvcnt, efficient and
competitive financial sector; provide long-term finance and promote a healthy
stock market culture. The instruments available in the market include equity or
ordinary shares, government stocks and company bondldebentures. Participating
institutions in the capital market include issuing houses, stockbrokers, commercial
and merchant banks, development banks, insurance companies, pension fund and
other financial intermediaries.
 The Nigerian Stock Market has recorded remarkable growth over the
years. As at 1994, the number of quoted securities was 276, comprising 29
government stocks, 70 industrial bonds and 177 equities. The number of stock
brokerage firms stood at 140 while market capitalisation amounted to N65.5
Billion. By 1996, the number of stock brokerage firms and market capitalisation
had risen to N162 and $4285.6 billion, respectively. The growth of the stock
market has been made possible by a number of government legislations. The
Income Tax Management Act, 1961 required pension and provident funds to
invest a substantial proportion of their funds in government stocks. Summarily,
the Trustee Investment Act 1962 required trustees to invest in government stocks
and industrial securities, while the Insurance (miscellaneous provisions) Acts,
1964 required Insurance Companies to invest a stipulated percentage of their
b
premium in government securities. The Nigerian Enterprises Promotion Decrees
of the 1970s also required foreigners to relinquish sizeable proportions of their
equity interest in local enterprises to members of the Nigerian public. The other
factors were the deregulation of interest rates and privatisation policy. Despite the
observed growth, the performance of the Nigerian Capital Market has been
described as unsatisfactory when compared with contemporary emerging markets.
The problems confronting the market include, inadequate securities for trading,
low level of market automation and awareness, lack of timely and easy access to
information, as well as poor infrastructural facilities. Conscious efforts luve been
made to promote and rehrm the market so as to make it responsive to the needs
and aspirations of the economy. In addition, internationalisation requires opening
up the market through the removal of restrictions on foreign ownership of assets,
loosening of exchange controls and overcoming certain rigidities and hurdles in
it's operations. It also entails improvement in accounting practices and
introduction of better communication and data processing facilities.
 The Second-tier Securities Market (SSM) was established in April, 1985
to encourage small to medium-scale enterprises to avail themselves of the
resources of the stock market by making listing requirements and conditions less
stringent for this category of enterprises with a view to increasing the volunle of
securities in the market. As part of capital market reform, the NSE introduced the
Central Securities Clearing System (CSCS) an automated clearing, settlement and
delivery system aimed at easing transaction and fostering investors confidence in
the market. Noteworthy is the linking of performance information on the NSE to
Reuters International Information System in order to disseminate relevant market
information to subscribers.
Other reform measures include the repeal of the indigenisation
legislations of the 1970s, which limited foreign participation in the capital market
b
and the promulgation of the Nigerian Investment Promotion Commission Decree
(NIPC) in 1995 to liberalise the investment climate in the country. The Decree
allows unrestricted foreign interest in Nigerian quoted companies and accords
foreigners and residents the same rights, privileges and opportunities of
investment in the Nigerian capital market. In addition, the Exchange Control Act
of 1962 was repealed and the Foreign Exchange (monitoring and miscellaneous
provisions) Decree promulgated in 1995 to further eaw the mechanism for foreign
investment flows.
Another spirited effort at capital market reform was made in 1996 when
the Federal Government set up thd Dennis Odife Panel to review the structure,
conduct and performance of the capital market. The panel discovered that the
market operated with a myriad of outdated laws and regulations, and that there
was no basis for the continued retention of the "monopoly" status enjoyed by the
NSE. It therefore recommended the promulgation of an all-embracing Investment
Services Decree to amend, modify and codify the provisions of the principal laws
and regulations within the capital market as well as the establishment of a new
apex regulatory agency. The panel also recommended the establishment of a new
National Stock Exchange in Abuja which would set standards against which other
Stock Exchanges in the country should compete.
Further action is required to enhance the virility of the nation's capital
market. For instance. there is need to rescind the regulations of the market to
ensure adequate protection of the investing public from malpractice, instill
confidence in the system and ensure market stability. Experience has shown that
inadequate or absence of regulation is detrimental to capital market growth and
development as it encourages sharp practices by participants. The formation of
Self-regulatory Organisations (SROs) such as associations of securities dealers
which should complemcnt SEC's role go a long way to monitor and discipline
b
their members for conducts inconsistent with the principles of just and equitable
trade. This would expand surveillance activities in the market by ensuring that
individual market operators comply with the laid down guidelines.
Investors are wary about investing in an unstable market as their major
incentive is the opportunity to make higher returns on their investments. Therefore
to attract foreign investors, the market must be seen to maintain an acceptable
level of macro-economic stability evidenced by low inflation and appropriate
exchange rate. Also, there should exist a vigorous and healthy private sector
within the economy. A reasonable measure of macro-economic stability has been
achieved in recent years in terms of persistent decline in inflation rate and stability
in exchange rate, attributable to improvement in government fiscal operations and
liquidity management. This needs to be sustained. It is, however, important that
the privatisation of state-owned enterprises, suspended some years ago, be
resumed and necessary tax incentives provided, while venture capital and unit
trusts should be given necessary encouragement, all aimed at broadening and
deepening the market and making it more resilient.
Also important is the need to enlighten members of the public on the
benefits derivable froni capital market operations in order to enhance their
awareness. Market operators, on their part, have to infuse increased
professionalism into securities trading to enhance efficiency and enable them to
keep abreast of developments in a dynamic environment as well as compete with
their counterparts in the rest of the world. Modern telecommunications equipment
and improved technology would ensure availability and dissemination of accurate
and reliable data and healthy competition, while the liberalisation efforts of
government should be sustained in order to make the nation's capital market fully
functional and supportive of growth and development of the economy.
b

2.2 The Role of Capital Market Operations in the Privatisation Process

According to Alhaji Mukhtar Ahmad 1986, the capital market and it's
institutions are so much talked about and yet least understood by the general
public. He maintains in his publication in the April/June 1986 CBN Bullion that
understanding the concept of capital market and the role of capital market
operators by the generality of the Nigerian public, will facilitate the process of
privatisation exercise and the ultimate goal of restructuring the Nigerian economy.
As mentioned earlier, so much is said and written about the capital market,
yet, so few people understand and still fewer people utilise the services of the
capital market. Even amongst the educated class, the capital market is often
regarded as an elitist affair and thc exclusive prescrve of thc top-echelons of the
capitalist enterprise system. It is even regarded by some, as another neo-colonialist
ploy to perpetuate the interest of the middle and upper classes in the ownership
and control of the enterprise system. This misconception is compounded by the
fact that the capital market per se; and its actors and wares are not people and
goods as commonly seen in everyday market place. In the capital market, the
actors are corporate institutions comprising the apex regulatory bodies (including
the Nigerian Stock Exchange, the Securities and Exchange Commission, etc.) and
a host of intermediation agents called operators, while the goods traded are
actually stocks and shares or other monetary instruments. By their special role in
creating money and liquidity, capital market institutions are indispensable to the
nation's economic system and have a catalytic impact on the growth of the
market oriented economy.
Alhaji Ahmad further stated that in order to reflect the various angles of
the effect of privatisation on the people, he would like to single out for mention
the role of capital market operators in the privatisation process. There is clear
@
need for the group of professionals to be mindful of the great opportunity offered
by the capital market in Nigeria by privatisation. This is the new opportunity to
make advancement in our march to rid the Nigerian capital market in it's
"thinness" posture after the outstanding progress achieved during the
indigenisation exercise.
Continuing, Ahmad urges the professionals to offer sound financial advice
to promote healthy rivalry and to ensure scrupulous handling of every application
towards privatisation. Perhaps more than ever before the duty to resist the
temptation to use our insider knowledge for self gains should be better inculcated
within the system. It is in so doing that the appellation "city gentlemen" will have
the desired influence on the way they are actually being perceived by Nigerians.
According to Ahmad summarily, the privatisation of the Federal and State
Government Companies is expected to revitalise the capital market by making
available substantial volume of shares for trading. This exercise would stretch thin
the resources of the various capital market operators more than was the case
during the indigenisation era. The main difference which is a very important one
is that the sale of shares now is by government to members of the public in
efficiently managed companies as against the sale by the foreign multinationals in
well run companies during indigenisation. This calls for a wider scope of services
by financial advisers and other advisers in ensuring that the companies are re-
organised and restructured prior to approaching the market. It also calls for
increased flexibility on the part of the Securities and Exchange Commission and
the Nigerian Stock Exchange, especially, in the areas of pricing and enforcement
of the listing requirements. While privatisation is progressive development in the
capital market which will result in better efficiency in the utilisation of the
nation's resources, utmost care is required in the process of implementation to
avoid the potential danger of wealth to a few privileged individuals. I believe
b
there is the general consensus that the economy can not afford the waste of the
past which has resulted from unrestricted involvement of government in activities
which could have been best handled by the private sector.

2.3 Conceptual Issues in Stimulating Industrial Development Economic

Growth Through the Capital Market
2.3.1 The Focus of the Capital Market - Dr. M. 0. Oio (1998) of CBN
research department in his write-up said that every economy seeks to promote an
effective capital market with the primary objective of mobilising long-term funds
from surplus economic units for the use of the deficit units for investment
purposes. This facilitates an efficient allocation of financial resources. The use of
the capital market reduces over-reliance on the money market, assists in
promoting a solvent and competitive financial sector as well as fostering a healthy
stock market culture.
2.3.2 The Relationship Between the Capital Market and Industrial
Development
According to Dr. Ojo, finance is the link between the capital market and
industrial development. As already noted, the relevance of the capital market to
industrial growth of any nation can be seen in the role which capital markets plays
in the mobilisation of funds and their eventual transfer to businesses, the
Government and individuals that need those funds for investment. Therefore, the
need for an effective capital market stems from the realisation that through it,
savings can be mobilised and channelled for production investment. Apart from
that, the ability to mobilise funds easily and cheaply on the capital market has also
been found to be an incentive for enterprises to expand their operations and
diversify into large scale enterprises.
4
Although, investment funds for industrial development can be obtained
from non-capital market sources, these other sources of funds are often
constrained by inherent weaknesses. For example, one of such sources, namely,
internal funding, is usually insufficient, hence the need to borrow from the money
or capital market to supplement internal resources. Since the money market
operates at the short - end of the credit market, more reliance is placed on the
capital market for businesses which requjre long-term funds. Thus, the importance
of capital market lies in it's ability to sustain projects with long gestation periods.
Since industrial enterprises belong to this category of projects, long-term capital
from the capital market is most relevant in sustaining industrial developn~ent.

2.3.3 Significance of Public Issues or Quotations:

Ojo explains that the complexity of raising fund through the capital market
makes it necessary for companies seeking fund in the market to appreciate what
public issues or quotations entail. Put briefly, public issue of securities could be
seen as the process by which shares, debentures and other debt instruments are
floated in the market for public subscription. These securities are instruments,
through which organisations in the private and public sectors of the economy
could raise funds for development. This method of funding provides an almost
permanent funds for the expansion of the activities of such organisations. There is
also an avenue in the Secondary Segment of the capital market for the trading of
such securities in the event of investors wishing to divest their holdings of such
securities. Quotations of securities on the exchange therefore confer on such
securities the advantage of listing of the securities on the Exchange and trading in
them. It should be noted however, that not all public issues are quoted on the
Stock Exchange because there are additional requirements which are to be met
before public issues are allowed to be quoted on the Stock Exchange.
b

2.3.4. Institutional Arrangements for Effective Public Issues in the Capital

Market - Dr. Oio
In his paper, spelt out that for any capital market to function effectively in
supporting industrial and other forms of development through public issues, there
is need for appropriate institutions and schemes. These include: the Stock
Exchange which is the hub of the market; the regulator which ensures that there is
law and order in all transactions in the market; the issuing houses which assist in
raising new funds in the market; the brokers who assist holders of securities in
disposing them and prospective holders of securities in buying them among
others.
According to Ojo, in Nigeria, the inlportance attached to raising fund.
From the capital market has been underscored by the efforts made since 1961 to
set up the institutional structure. Some pillars of the structure of which includes:-
(a) The Stock Exchange (1 961)
 (b) The Second - Tier Securities Market (1985) for small investors.
(c) 'The Securities and Exchange Commission (SEC) (1 989) for the
regulations of the entire market.
(d) The brokerage firms which number up to 164 by December, 1997 and
(e) The issuing houses which are mainly Merchant Banks.
Relying on the foregoing institutional arrangement, the Nigerian capital
market has become veritable source of long-term funds for financing industrial
and other forms of development, especially in the private sector.

2.4 Procedures for Fund Raising in the Nigerian Capital Market

Public issues and quotations in the Nigerian capital market are guided by
the relevant laws as well as the regulations issued by the SEC and the NSE.,In the
first instance according to the Director of Research CBN in 1998, the SEC must
approve any proposals for issue of securities. Thus, the proposals by the issuer are
assessed. This assessment includes determining the balance between equity and
debt in the capital structure of the organisation and appraising the economic
environment among other issues. Second, the issuing houses (mostly Merchant
Banks) take the necessary steps and processes to take the issue to the market and
ensure that the issues are properly structured while agreement on the issue of
underwriting, in the event of under subscription is reached. Also the Stock
Exchange undertakes the listing of securities which allows the trading of such
securities in the secondary segment of the market. Public quotations and
subsequent trading in the secondary market assist in expanding the number of
participants in the market by offering a smooth exit mechanism without disrupting
the use of the original capital invested.
2.5 Available Opportunities in the Nigerian Cagital Market
As observed earlier said Dr. Oio of CBN Research Department, the
capital market embraces both new issues (primary transactions) and trading in old
issue of Stocks (secondary transactions). Indeed, the Nigerian capital market has
provided opportunities for new financing alternatives to companies in the form of
risk capital (equity) and debt instruments.
The opportunities he said, provided by the foregoing sources of funds are
enormous. For example, equity has been used increasingly by private companies
to finance their industrial and other projects. Similarly, the Federal Government
has used funds realised from the issue of development stocks for the purpose of
executing some specific projects or for on-lending to state and local goverdnents
or other government parastatals. In the same way, bonds have served as long-term
debt instruments (often approved by the SEC and saleable on the stock market) for
raising needed fund. One of the most popular form of bonds in Nigeria consists of
debentures which is particularly utilised by publicly quoted companies. Usually,
debentures are secured by specific charge upon the whole or a specific part of the
company's assets or by floating charge upon the assets of the company. In the case
of preference shares (stocks), holders are entitled to fixed rate of dividend from
the company each year. The holdings are not usually redeemable, thereby
providing permanent capital which does not have to be repaid but the holder can
sell the share in the stock market. However, there are variants of preference shares
such as participating redeemable preference shares, convertible redeemable
preference shares and cumulative redeemable preference shares.
Given the long-term horizon and the liquidity offered by it's secondary
market, the capital market provides the best channel for the mobilisation of
resources for the development of industrial capabilities. It has also served as a
means for the encouragement of broader ownership of firms and improved
resource allocation through competitive pricing mechanism. The observed
positive influence of the capital market on the development of industrial
capabilities may have prompted the observation that the industrial revolution of
the eighteenth century was not attributed to new discoveries in science during the
century (since the underlying scientific inventions took place much earlier) but
due to the liquidity of the financial markets which promoted the financing of
capital intensive profitable investments (Hicks, 1969).

2.6 Performance of Quoted Companies in the Nigerian Capital Market-

The Nigerian capital market, as a network of facilities for mobilising and
dealing in long-term funds has the Stock Exchange as its nerve centre. The Stock
b
Exchange provides a market in which securities alrcady issued may be bought
and sold by the investing public. Patronage of the Stock Exchange by companies
at the initial stage of the institution in Nigeria was rather modest and
experimental, as the first few issued between 1961 and 1971 (1 5 equities in all)
featured companies like the Nigerian Tobacco Company, Nkalagu Cement
Con~panyLimited and the Daily Times of Nigeria Limited.
The birth of economic Nationalism between 1972 and 1974 generated an
expansionary effect on the operations of the market. A combination of changing
economic environment and policies acted in concert to stimulate active
participation of Nigerian companies in the capital market. The most important
among these changes was the promulgation of the Nigerian Enterprises Promotion
Decree (NEPD) in 1972. A major provision of the NEPD required foreign
companies operating in Nigeria to extend equity participation to Nigerians. The
Decree categorised business enterprises into Schedules I and 11. Schedule I
contained business enterprises that must be fully owned by Nigerians, while
Schedule I1 contained enterprises in which Nigerians must have at least 40%
equity share. The 1972 Act was replaced by NEPD of 1977 following
Government's recognition of some weaknesses in its implementation. The 1977
Act went further to classify all business into three Schedules. Nigerians were
expected to own 100% of the enterprises in schedule I, a minimum of 60% in
Schedule I1 and 40% in Schedule 111.
To facilitate the implementation of the Decree, some institutions,
including the Nigerian Enterprises Promotion Board (NEPB), were established.
The NEPB played a major role in altering the ownership structure of companies in
the Nigerian capital market and brought about increase in the volume of
transactions in the market as the number of listed equity securities increased to 34
in 1976 and 92 as at December, 1980. Thereafter, it rose successfully to 123, 151
b
and 161 in 1991, 1993 or 1995, respectively. The NEPD however, led to, a bias
towards investment in large companies which was detrimental to the development
of Small and Medium Enterprises (SMEs) and tended to discourage direct foreign
investment. One of the measures taken to deal with these weaknesses was the
establishment of the Second-tier Securities Market (SSM) in 1985 which has
assisted Small and Medium sized indegenous to access the capital market for
expansion. Furthermore, the Privatisation and Commercialisation Programme, as
embodied in Decree No. 25 of 1988 with the objective of transferring commercial
and industrial enterprises formerly owned and managed by the public sector to
private hands, helped to expand the frontiers and dept of the Nigerian capital
market. This was because the predominant method of the privatisation
programme was by public offer for sale which relied exclusively on the Stock
Exchange. More recently, corporate financing and refinancing in the market has
been further expanded as a result of realignment of financial programmes by
companies. The development was induced by high cost of fhnds in the money
market which brought to the fore the cost effectiveness of financing businesses
through the capital market. The Govenunent also recently repealed the NEPD and
replaced it with the Nigerian Investment Promotion Commission Decree of July
14, 1995 to aid the inflow of foreign investment. These developments have
enhanced the growth of the capital market and it's contributions to the growth of
Nigeria's industrial capability.

2.7 The Effect of Advanced Technology on Communication

2.7.1 On the Economv and Business - International Markets
Lisbeth (1982) in the topic titled "Information Technology - the future",
explains that modern technology already brings fast and reliable information about
international events into the money, bullion and commodity markets of the world,
b
affecting rates of exchange and prices swiftly. That soon such news will reach into
many more offices via viewdata and computer links. The complexity of
international business, of importing and exporting will be heightened by the need
to react swiftly. The premium on very good management information and high
management skills will rise.

2.7.2 On Security
With computer - linked systems and many people with access to the
computers according to Lisbeth and Co., the need for tight security of
information is paramount. Otherwise, confidential company and personal data can
all too easily pass into the wrong hands. Companies such as banks, and even some
countries like Sweden, are very aware of the problems and have taken steps to
ensure confidentiality, by limiting access and introducing security codes for
example. I-Iowever, this is not true everywhere and it is a danger area.
2.7.3 On Society
Continuing Lisbeth explains that people working in offices will
experience the Social Changes of reduced personal contact and changes in
working conditions. For some, there may be a deskilling of their work; for others
retraining to acquire new skills will be necessary.
In general, high technology in industry has led to fewer jobs in modernised
factories, but there has been a growth, not only in electronics and its peripheral
industries, but also in service industries. The effect on offices in the future is
likely to be a reduction in the number of jobs but a greater need for staff with high
communication skills.
B
In the already highly developed and industrialised countries, the general
effect on the population will be to generate considerable social change. Allied to
the high levels of unemployment already forecast for other reasons, the effect of
high technology is likely to intensify the divisions between the skilled and the
unskilled, to require very many people to face periods of unemployment or
retraining during their lives. The working week may shorten, and also the working
life. There should be a corresponding increased emphasis on the provision of
leisure and community facilities so that those not at work can lead rewarding
lives.
It is more difficult to foresee the effect of introducing sophisticated
communications technology into countries which at the moment have scarcely a
national telephone system and in whose offices the electric typewriter and the
pocket calculator represent considerable progress. However, much of the new
technology, in its simplest forms, is not expensive and may be expected to spread
as quickly as telephone links, electricity supplies and the education and training of
I ,
the population will allow. There should then be an increase in employment 1
opportunities.

One noticeable social change which has already taken place in the
industrialised society is the widespread availability of news and information
through the medium of television particularly. Supplemented by view-data
systems, video cassette, satellite television bringing foreign TV programmes into
the home, and home computers, it seems possible that our leisure time will be
spent receiving a wide variety of visual information, while at work we shall be
using the same satellite and telephone links for computing and for written
communication.

r
Either way, we are likely to have become used to reading from a sc een,
instead of from a page, and to typing into a machine rather than writing by hand,
or even to dictating material to a computer or word processor instead of a
secretary.
Whatever the methods we shall be using in the future for our
communications, we need to remember that the intrinsic message is the
communication and that the sophisticated technology is of no use if the basic
communication is poor.

2.8 When Worlds Collide

In the text "Going Digital", Oliver Morton said that details of duplication
and encryption make the world of bits very unlike the world of atoms. That this
difference is probably clearer now than at any other time, past or future. He says
that the world of information is now visible enough for its strangeness to be
discerned, but it does not yet permeate everything. When it does, the strangeness
will cease to stand out. Everything will be strange, to today's eyes - nothing wil
be, to tomorrow. The distinctions between the worlds are already breaking down,
and that breakdown will continue. The difference between physical keys and
information codes will disappear, as even the most humble lock learns to read
information, rather than merely respond to the grating of metal teeth. Precision
instruments, too fine ever to have been developed when manual control was the
only possibility, will make the copying of physical objects almost as good as the
duplication of digital data. Today's two worlds will merge into one.
This isnot just true in a technological sense. Philosophers and priests
have divided their worlds into realms of mind and body, of spirit and
flesh. This distinction will not breakdown - but it will change. Minds and spirits
will not be given to animate objects like computers or cars, at least not for a long
while. But the power of communication will be theirs. The will measpre the
world and respond to it. People who talk to inanimate objects will no longer be
mad. And inanimate objects will talk to one another. They will not have
viewpoints or feelings; but they will be able to inform, and to be informed. Until
technology set it free, information relied on people to carry it, to disperse it, to
create it. Now, information can be gathered by inanimate systems and filtered to
human minds. It can enhance our dealings with cach other, and it can be sent off
on its own into the world. 'If there is a key to the revolution described in this
paper, that is itY.

2.9 The Information Revolution and the Global Economy

2.91. The Hitchhiker's Guide to Cvbernomics
This is a survey of the world Economy in which Pan Woodall (1996) an
Economist, looked at the implications of these changes in technology, asking what
they meant for productivity, employment, trading, trade and growth.
 She went on to say, Hold on to your hat: the world is undergoing "tectonic
shifts" and "a tsunami of transformation" - or so a multitude of economists and
management gurus would have you believe. An avalanche of books is
foreshadowing nothing less than the end of the economic order. Take your pick
from The End of Affluence, The End of Work, The Death of Inflation, The Death
of Competition, The End of Geography , The Death of Money, or even The Death
of Economics. The only certainty left in this world, it seems, is that eye - catching
titles are good for book sales.
The new-age economic thinkers come in two flavours. A brave few look
forward to a new golden age of prosperity; most, however, predict some form of
economic Armageddon. They seem to be striking a chord. Throughout the rich
industrial nations, more and more people are anxious about unemploymept and
stagnant pay. These issues will loom large in the forthcoming American and
British elections, even though both countries are enjoying respectable growth and
much lower unemployment than continental Europe.
The alleged villains of the piece are globalisation and breathtakingly rapid
technological change. Conlputers and robots along with slash-and-burn
management techniques are said to be destroying jobs. At the same time, the
freeing up of trade and capital flows and huge advances in telecommunications
have increased international conlpetition and made it easier for firms to shift
production to low-wage developing countries. Many feel that Adam Smith's
invisible hand is trying to push them off a cliff. Current Government policies, it is
suspected, are no longer working because they are inappropriate for the new
global digital economy. For instance, Lester Thurow, and economist at MIT,
argues in his book, The Future of Capitalism that the tectonic shifts are upsetting
the old rules of capitalism. Does the technological revolution call for an economic
revolution too?
2.9.2 Making Waves
From the spinning jenny to the computer, new technology always strikes
fear in worker's hearts. Yet new methods of production, new products or new
forms of industrial organisation are the main driving force behind economic
growth and hence rising living standards. Economies have limited amounts of
capital and labour. Without technological progress, the opportunities for growth
would eventually run out. Growth can be sustained only by finding new and better
ways to use the planets limited resources.
Over the past two centuries real, GDP per head in the rich industrial
economies has grown by an average of around 1.6% a year, a rate at which income
per head doubles every 44 years. However, historically, such growth has been the
exception not the rule. Clearly, it is difficult to be precise about the figures, but
crude estimates suggest that in the 13 centuries up to 1800, real output per head
in Western Europe crept up by an average of no more than 0.1 - 0.2% a year (see
chart below). at that pace, living standards do i ~ o timprove noticeably during an
individual's life time and real incomes double only every 500 years.
What has changed in modern times is the pace of technological
innovation. The middle ages did come up with a few inventions such as wind
mills and hose shoes, but technological progress was imperceptible compare with
what is happening now. Since Adam Smith economists have recognised that
technological change is important for long-term growth, but only in the past two
decades have they been studying the subject in earnest.
'Traditional "neo-classical" models of growth developed in the 1950s
focused on labour and capital. As you add more of each input the theory says
output goes up. But these models had a paradoxical quality: in the long run, the
rate of investment has no effect on the economy's growth rate. In the so called
steady state growth per head in output is doomed to be zero unless the economy is
making technological progress. Yet the simplest versions of the model had
nothing to say about technological change, the only thing that on the model's own
analysis really mattered.
Technological progress was seen as something that simply rained down
from heaven. Studies show that in most economies, higher inputs of labour and
capital account for barely half the total growth in output this century. The huge
unexplained residual was labelled "technological change", but in truth it was a
measure of economist's ignorance.
Enter "new" growth theory hatched in the mid - 1980s by the path-
breaking work of Paul Romer, an economist at Stanford University. This
attempted to incorporate technology directly into models of economic graph by
explaining how knowledge - in the shape of both technology and human capital -
is created and spread through the economy. Ideas, unlike material inputs, are not
in themselves scarce. New ideas for more efficient processes and new products
can therefore make continuous growth possible.

BLAST-OFF
OECD Countries real
G1)P per person
AD 500 = 100, long scale 5,000

1,000
500
100

500 1000 1400 1800 1995

W Europe before 1 800
Source: Angus Maddison: The Economist estimates
2.9.3 A Shrinking World
One particular advantage of inforination technology is that it reduces
communications and transaction costs, helping markets to work more efficiently.
A three minute telephone call between New York and London now costs about
$2; in 1930 it would have cost more than a hundred times as much in today's
prices. The decline in costs is likely to accelerate over the next decade. Thanks to
huge technical advances, a massive increase in transmission capacity and
increased competition. Some predict that the marginal costs of
telecom~nunicationswill plummet to somewhere near zero for international as
well as for local calls. Simon Forge of the Cambridge Strategic Management
Group, a consultancy, predicts that by the year 2005, a transatlantic videorphone
call will cost only a few cents an hour.
Perhaps, the most important characteristic of Information Technology (IT)
is that it deals with knowledge. More and more knowledge can now be codified:
information, whether in the form of numbers, letters, pictures or voice can be
reduced to digital form and stored in computers as a series of zeros and ones. This
allows knowledge to be diffused more rapidly and so makes it easier for
developing countries to catch up. Codification of knowledge and low transmission
costs also make services more tradable by eliminating the need for direct contact
between yroducers and consumers; and it makes production more footloose,
allowing firms to base different parts of their business in different countries and
connect them by computer networks.
Enthusiasts for information technology cite another point in its favour: that
it makes fewer claims on resources than previous technologies and is potentially
more environmentally friendly. Whereas cars, railways and stream engines were
heavy users of raw materials and energy, information technology is speeding up
the shift towards a so called "weightless" economy, in which a growing slice of
output takes the form of intangible goods. Information Technology also offers
huge potential for reducing pollution and congestion through teleworking and
teleshopping, that will make many journeys unnecessary. Mr Forge reckons rather
optimistically that by 2005, a 5th of all workers in rich countries will be
teleworking either part-time or full time. But it is worth recalling that when the
car was first introduced, it was seen as an environmentally friendly alternative to
the horse - drawn carriage, which at the end of the 19thcentury was causing severe
traffic jams in London and in undating the place with manure. Cars secured to
reduce pollution drastically, yet today they are seen as the enemy not the friend of
the earth.
The year (1996) coincidentally saw both the 100~''anniversary of ~e first
mass-produced car and the 50"' anniversary of the first computer. How will history
judge the I.T. revolution in another 50 years? The rest of this survey will try to
provide some clues, starting with a look at what IT can do for productivity and
why it hasn't done more already.

2.9.4 The End of Work?

History is full of predictions that new machines will cause mass
unemployment. Britain's luddites in the early 191h century smashed the power
looms and spinning jennies that threatened their livelihood. In the 1930s factory
automation was blamed for the long dole queues. In the 1940s Nobert Weiner, a
pioneer of computing, forecast that computers would create unemploynlent on a
scale that would make the Great Depression look like a picnic. And now doom-
mongers are again predicting a jobless future as robots and computers take over.
Even those lucky enough to lung on to a job will, they say, face insecurity and
low wages.
 If history is any guide, they are wrong. Over the past two centuries of huge
technological advances, employment and real incomes in rich industrial countries
have risen almost continuously (see chart below). Jobs and living standards have
risen, because of technology changes, not inspite of it. America, the world's most
eddc3technologically advanced society, has one of the lowest jobless rates in the
OECD. But modern day luddites remain undaunted. Jcremv Rifkin, an
American technophobe, argues in his book, The End of Work, that three out of
four jobs in America - white-collar as well as manual - could be automated. He
predicts that by the middle of the 21'' century, hundreds of millions of workers
will be left permanently idle.

MORE PRODUCTIVITY, MORE JOBS

Big seven industrial economies, lUO= 100

I Source: OECD * tiDP per worker

It is true that millions of jobs will be destroyed by technology, just as they have
been over the past 200 years. But in the past, those job losses have always been
offset by job gains, so, total employment has continued to grow along with the
population. As blacksmiths and coachmen disappeared, car machines and
salesmen took their place. Technology changed the types of jobs on offer but the
volume continued to grow.
Ah, say modern luddites, but information technology is different from
previous technologies, so its consequences for employment will differ too. Three
particular differences standout:
4 First, Information Technology is much more pervasive in its impact than

steam power or electricity, affecting all kinds of jobs whether white - or blue -
collar, manufacturing or services. Mr. Rifkin is especially worried about IT'S
potential to replace jobs in the service sector where growth in employment has
been roughly equivalent to all the new jobs created in the past half-century.
Computers that can recognise speech have replaced telephone operators,
ATMS (Asynchronous transfer mode signal) have superseded bank teljers. In
some hotels electronic check - in kiosks, voice -mail and automatic check-out
have taken over to the point where guests need never speak to anybody. As
character and voice-recognition technology improves, millions more such jobs
could disappear, says Mr. Rifkin.
Smart machines are also invading the professions. Computers can diagnose
some illnesses, and robots can now be programmed to perform operations such as
hip replacements. High-tech synthesising machines can do the job of musicians
and with clever computers films no longer require film stars. Even writers cannot
consider themselves indispensable, according to Mr. Rifkin: a computer-generated
novel, a torrid rommce reportedly no worse than many crafted by a human brain,
was published in 1993.
4 Second, Information Technology is being introduced far faster than previous

technologies, partly because it's price has fdlen more rapidly. That leaves less
time to replace lost jobs and to retain peoplc.
 Third , Information Technology makes work more mobile in some services,
sophisticated telecommunications have replaced physical contact with
customers. Firms can shift jobs such as computer-programming or processing
insurance claims to lower-wage countries on' the other side of the globe. In
that sense, IT not only reduces the demand for workers, it also increases the
supply by opening up jobs to the whole world. Information Technology (IT)
many well create lots of new jobs, say the pessimists, but they are more likely
to be in East Asia than in the rich industrial economies.
2.10 Information Technology/Overload and the Nigerian Environment
Nigeria today represent a huge and unorganised information system - each
cluster operating almost independently without recourse to standards, linkages or
feedback. This fundamentally negates the principle of structural dependency of
data and information which must be inter-linked, networked and interact at
various levels as an inevitable transformation process for generating meaningful
knowledge based on acceptable level of organised standard.
In his lecture note, Mgboh P. C. (1999) a computer consultant explained
that information overload without the effective tool (technology) to analyse,
extract, standardise, process, store, retrieve and efficiently distribute through
secured pipeline of net works for the needs of the entire society, has the capacity
of choking a nation's development goals. It applies to corporate business
organisations, institutions, social clubs and the family. He added that for
information to make better sense, it must be meaningfully organised, warehoused,
re-structured, analysed, standardised, tested and ultimately transformed into
productive knowledge.
Life, man and his total environment represent a fearful quantum of
con~plexinformation load. Some of them are and have life forms, others are not.
Some are mobile and superactive, while others either incubate or are dormant.
Almost all have colour, intriguing designs, fascinating style, standard and
acknowledge wisdom.
The entire universe therefore and life in particular as we know today
represent the most complex information web. Perhaps, there is need to emphasise
that life is an unending story of structural formation of data and knowledgeable
information networks - which ultimately converges into intelligence. The time-
line, which divides nations within the context of development at all levels is found
in the basic equation on how they plan, time and process, apply, store and retrieve
information at all levels - classified under "knowledge" and "intelligence".
Of the long years cxistence of the Federal Republic of Nigeria as an
independent State, an unimaginable volume of data and information (printed,
written, pictures, video and oral/voices) have been generated. Surprising ~ o r t i o n s
of this information volume were undocumented. A major part of the documented
aspect which can be perceived as a warehouse of knowledge is either not properly
stored or got perished and or currently dumped in dark corners.
As population grows, demand for basic and sophisticated information also
multiplies many folds. To cope with this demand (both locally and
internationally), it's pertinent that advanced tools and technology should be
employed to enhance and deliver efficient services. User skill must also be
enhanced through continuous training to empower an encourage creativity. Above
all, such information must be reliable, mobile and accessible by anyone at all
times and from any point.
Presently, Nigeria is experiencing "inforn~ation overload" and by this I
mean a process of rapid data and information accumulation with slow response
tools to analyse, process and redistribute refined information for society's use,
development and creation of wealth. Information overload creates a serious glut,
slows down socio-economic productivity and development process; above all, it
breeds covert illegal institutions responsible for national resources shearing
blockage. The resultant effect of information overload is a vicious circle of 'out-
of-life' or out dated data and information pool that have been overtaken by global
events but still in circulation at snail speed. It abundantly builds up communities
of massive ignorance amidst fearful economic artificiality, distortion and rapid
population growth.
This inability to empower the citizenry with the up-to-second information
to innovate, .create, produce and compete in the free market place opens up the
local market for massive consumption of imported goods. Information overload
refocuses the mind-set from innovativelcreative vision to a plague-like consumer
mentality unknown to them, what they actually consume as product is data and
information transformed into knowledge from which the product is made. A
@
product constitutes: its labour content (Human resources, data and information),
material content (Research and development data and information), invention and
creativity content (Education and Empowerment) and of course, its capital content
(Natural resources and knowledge management). That is a basic form of science
and technology interplay.
Conventional information overload exists in oral paper, video and physical
environment format. Oral information has been with us all for a long time and has
become very natural. The core aspect of information overload for economic
management, corporate business functions, religious activities,
social/entertainment aspects of family life and for governance exists in paper, film
and other format. It may be perceived that currently, almost all our daily data
combination and information movement or delivery exist in non-electronic
format. This has fuelled misrepresentation of economic planning parameters,
generated performance distortion and overwhelmingly aided and abetted
economic instability in our nation. Information overload is an embodiment of
"manual workload" while the reverse is the "thinking or knowledge workload".
In today's global competitiveness, information overload in paper form
amounts organisational and administrative incompetence. It is a big and serious
problem. It decreases national or corporate productivity potentials. This is mainly
because it takes much longer time to find, process, store and deliver this type of
information - especially when it occurs in an environment without an efficient
and means of point-to-point communication.
Due to the intensity of time devoted to searching, sorting and processing
data and information, generating qualitative output is essentially slowed down.

2.1 1 TimeNalue Factor of Information

6
This is referred to while analysing and evaluating information. According
to Prof. Modum (1995h in any management system, information is seen as a
commodity of value and is to any business organisation or system what the blood
circulatory system is to the human body. In other wards, when information fails
to reach my part of the system to structural deficiency, that part becomes anaemic
and soon a liability to the rest of the super system. This is why the systems theory
states that every system is held together by information exchange.
Like every other resource, information needs to be evaluated and
quantified in terms of sourcing, generation, processing, cost and availability. The
idea is to ensure that the cost of generating information for use by the organisation
is not greater than the value of information generated.
The time lag between the generation of information and its disposability
for decision making is of great importance. This is because, information can only
be useful if it's prompt and ready for use by appropriate company operatives for
decision making and corporate planning.
2.12 Need for Information Technolow in the Developmcnt of the Nberian
Capital Market
The need for information technology in the development of the Nigerian
capital market cannot be over emphasised. Because of the diverse nature and the
scope of operations of the Nigerian capital market and for it to embrace the
growing requirements of investors in the market and offer qualitative services,
there is serious need for enhanced information system. Caught in the information
deluge from around the world, the market must look to a very novel approach to
help it cope. There is the need for very big memory stores, very fast and accurate
retrieval systems and above all, the ability to sift and sort the information before it
drowns in it; JMgboh P. C. , 1999).
6
The Nigerian capital market being characterised by infrastructural
inadequacies: inordinate delays in effecting transactions between issuing houses,
broker-dealers, registrars, investors and their banks due largely to the inadequacy
of postal and telegraphic services. The drag in the delivery service discourages
many investors who sometimes view with distrust their registrars and brokers
when share certificates are undelivered or proceeds of shares sold not received
promptly. Infrastructural limitations insulate many investors especially those in
the rural areas from broker-dealers, thereby restricting trading in securities.
The development finance institutions who play major role in the
development of the capital market by providing agency services and information
about the market at the grassroot including professional expertise in issuing and
marketing of corporate securities also require a formidable and developed
information technology to cope with the task.
It could be observed that most members of the public in Nigeria, are
ignorant of the meaning of shares and stocks as well as benefit derivable from
capital market operations. In some cases, the Nigerian businessman feel reluctant
to go public as already mentioned for fear of loosing control of family business.
All these bother on ignorance and it's only through an enhanced information
system that these problems could be tackled so said Onosode R. 0 . (1998).
The Nigerian Stock Exchange (NSE) operations appear sluggish and the
market thin - thin in the sense that very few securities were listed and sluggish
because of lack of continuity in dealings which arose from the apparent
unwillingness of Nigerian investors to speculate with their shares.
2.13 Information Audit and the Nigerian Capital Market Development
Mgboh P. C. in his lecture note (19991 mentioned that Information Audit
is the process of discovering and evaluating the information resources of
organisations with the aim of implementing, maintaining or im roving
P
information management systems.
If a system could be developed through which awareness is created on the
activities of the capital market, and the performance of operators in the capital
market, it will help encourage more prospective investors into the market. This is
why information audit is very useful in the development of the capital market
segment of the economy.
Similarly, infor~lliltion audit is very necessary in the development of
Nigerian capital market because;
(a) It will ensure rapid growth of the market.
(b) It constitutes the primary resource of all activities of the market and which
shapes its results in reports and proposals for development.
(c) It necessitates the accessibility to qualitative and quantitative data about the
use of information resources in the capital market operations.
(d) It satisfies the management and operators in the market with regards to the
informalim service.
2.14 Knowledge Economy Vs Information Literacy
According to Prime Minister Tony blair (1999) in ASLIB, "Knowledge -
driven economy is the economy of the future" and could be threatened by a lack of
information literacy skill. According to the latest research released by knowledge
management consultant: in UK, Information Literacy combines an awareness of
the value of information and knowledge to an organisation with the skills and
competencies 'that enable individuals to create, find, share and use information
and knowledge effectively.
Although, most of us understand what computer literacy is, very few
people appreciate what it means to be information literate. My latest research
reveals that many businesses within and outside the country lack the fundgmental
information management skills necessary to exploit fully the knowledge and
information they own and have a'-cess to. Unless there is substantial investment in
information literacy by Government and business organisations, the knowledge
economy vision may be jeopardised.
It has been observed that little attention has been paid by companies to
teaching and learning information literacy skills. They devote enormous resources
and time to developing computer literacy skills, but do not train staff to structure,
find, evaluate and use information to which computers provide access. Even if
information is well organised, too much information makes effective searching
difficult.
 REFERENCES
1. CBN Annual Reports and Statement of Accounts, "Reform of the
Nigerian Capital Market", (Dec. 1997): 39 - 40.

2. Mukhtar Ahmad, "The Role of Capital Market Operations in the

Privatisation Process", CBN Bullion, Vol. 10, No. 2 (Apr./June,
1986): 22 - 23. b

3. Ahmad, loc. Cit; 27.

4. M. 0. Ojo, "Developing Nigerian Industrial Capabilities through public

Quotations, as a key for Sustainable Economic Growth" CBN
Bullion; Vol. 22, No. 3 (JulyISept. 1998): 5 - 8.

5. Ibid., 1 0 - 11.

6 . K. S. Adeyemi, "Options for Effective Development of the Nigerian

Capital Market", NES Seminar Paper (1998).

7. E. 0 . Akinifesi, "The Role of Capital Formation and Industrialisation in

Economic De~eloprnent'~, CBN Bullion (1993): 10

8. Federal Republic of Nigeria, "Bureau of Public Enterprises Decree:

Lagos, (1 995).

9. F. R. N; "Nigerian Investment Promotion Decree"; Lagos (1995).

10. F.R.N, "Foreign Exchange Monitoring t id Miscellaneous Provisions

a

Decree": Lagos (1995).

1 1. F. R. N. "Privatisation and Commercialisation Act": Lagos (1 990)

12. F. R. N. "Securities and Exchange Commission Act"; Lagos (1988).

13. J. Hicks, A Theory of Economy History. (Oxford: Clarendon Press;

1962), P. 12 - 20.

14. P. Okigbo, Committee Report on Financial System, Lagos (1 976).

15. G. 0 . Onosode, "Capital Market and Nigerian Economic

Development"; NES Seminary Paper, (1998).

16. Lisbeth, A Woolcott, Information Technology, the future, (Hong Kong:

Macmillan Press Ltd., 1985), P. 273 - 274.

17. The Economist, "Going Digital", Revised Edition (London: Profile ,

Books Ltd: 58A Hatton Garden, 1998), p. 10.

18. Ibid, p. 16 - 19.

19. P C. Mgboh, "Information Overload" lecture paper, (1999): 1 - 3.

20. The Economist, loc. Cit; p. 22.

2 1. Mgboh, loc. Cit; p. 10.

22. Uche Modum, Management Information Systems; Analysis and designs

(Nigeria - Enugu: Fourth Dimension Publishing Co. Ltd., City
Layout, 1995), p. 49 - 50.

23. P. C. Mgboh, "Information Audit", lecture paper (1999): 6 - 7.

 CHAPTER TIIKEE

3.0 RESEARCH DESIGN AND MEDOTHODY

3.1 SOURCES OF DATA
Roth primary and secondary data were employed by the researcher in the
course of this assignment.

3.1.1 Primary Data

The primary data used in this work were sourced from direct information
gathered during interviews with representatives or sampled population in the
following sectors who operate in the capital market.
(a) Stock Exchange Market (SEM)
(b) Stock BrokersISecurities Firms
(c) Private Investors in the (SEM)
(d) Government Sector.

3.1.2 Secondary Data

The secondary data were extracted from information gathered in printed
materials which includes textbooks on capi 11 market operation in Nigeria, and
those on information tech~lology.Business newspapers, financial magazines and
journals. Other sources includes seminar papers in related topic. Series of CBN
publications like Bullions, Annual reports and statements of accounts, briefs.
Other printed documents includes lectur papers and interview reports.

3.2 METHOD OF INVESTIGATION

In the course of this research, the researcher interviewed selected
experienced people among the operators, inves~ors,promoters and organisers of
the Nigerian capital market. The observations and information drawn from the
interviews were compared with the documented materials to ensure authenticity of
information. The interviews were with selected people from or among Stock
Exchange markets, stock brokers/securities companies, private investors in SEM
and government sector
The oral interviews were scheduled and fixed on an agreed period while
the questionnaire were distributed and later collected and processed.

3.2.1 Interview Ouestions and Presentation

Dear Respondent,
I am an MBA (Banking & Finance) student of University of Nigeria,
Enugu Campus carrying out a research on the impact of Information Tethnology
on the Nigerian Capital Market as a partial fulfilment of the requiremenis for the
award of the Degree of MBA.
Could you please help answer all or some of the questions below. The
questions highlights problems associated with capital market operations in
Nigeria, especially those problems bordening on information technology. Please
rick good against your answer option eg. ((a) Agree (b) Disagree O Strongly agree
(d) Strongly disagree).
1. The buy and hold attitude of Nigerian investors in the capital market is in the
best interest of the market. (a) Agree (b) Disagree O Strongly Agree (d)
Strongly Disagree.

2. Capital gains and security of investment appear more crucial than earnings and
dividend motivation in the stockholding behaviour of Nigerians.
3. Information about the number and range of securities available for trading and
as well the volume and value of such securities has never been a problem to
interested investors in the Nigerian capital market. (a) Agree (b) Disagree (c)
Strongly Agree (d) Strongly Disagree.

4. Presently, the infrastructural facilities available in the Nigerian capital markets

are adequate for the growing trend in the market. (4 Agree (b)
Disagree
(c) Strongly Agree (d) Strongly Disagree.

5. Infrastructural limitations in the Nigerian capital market insulate many

investors especially those in the rural areas from broker - dealers. (a) Agree
(b) Disagree (c) Strongly Agree (d) Strongly Disagree.

6. Promotion of screen-based trading in stock and shares will not in any way
enhance the operations of the Nigerian capital market. (a) Agree (b) Disagree
(c) Strongly Agree (d) Strongly Disagree.

7. Depository transfer and clearing systems in place presently in the Nigerian

capital market requires improved application of technology. (a) Agree (b)
Disagree (c) Strongly Agree (d) Strongly Disagree.

8. The uriorthodox perception of stock valuation by some investors have

contributed to the slow and sometimes confusing price movement of major
stocks in the market.
(a) Agree (b) Disagree (c) Strongly Agree (d) Strongly Disagree.
9. The low trading volun~ein the Nigerian capital market is attributed partly to
the reluctance to sell shares.
(a) Agree (b) Disagree (c) Strongly Agree (d) Strongly Disagree.

10. Information technology does not play much role in the operations of the
capital market.
(a) Agree (b) Disagree (c) Strongly Agree (d) Strongly Disagree.

3.3 Samples Used

The sampled population used in the investigation includes those from
Stock Exchange Markets, Stock brokers/Securities firms, private investors in the
SEM and Government sector. b

3.4 Validation of Research Instrument

The data collected were analysed making use of frequency tables of raw
figures and percentages. In view of this the researcher therefore felt satisfied using
percentage mcthod for the analysis of the work.
 CHAPTER FOUR
4.0 PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
4.1 Presentation of Data
The Buy and Hold attitude of Nigerian investors is in the best interest of
the market.
S/N Sub-sector Agree Strongly Disagree Strongly Total
Agree Disagree
1. Stock Exch. Market 2 3 12 8 25
2. Stock Brokers 3 3 10 8 24
3. Private Sector 5 4 8 7 24
4 Public Sector 1 6 10 8 25
Total 11 16 40 31 b 98
% Total 11.2 16.3 40.8 31.6

Table 11
Capital gains and security of investment appear more crucial than earnings and
dividend motivation.
Sub-Sector Agree Strongly Disagree I Strongly Total
Agree I Disagree
Stock Exch. Market 8 25
Stock Brokers 10 24
Private Sector 14 24
Public Sector 9 25
Total 41 98
% Total

Table I11
 The number and range of securities available for trading and the volume
and value of such securities has never been a problem to interested investors.
Sub-Sector

Stock Exch. Market

Stock Brokers
Private Sector
Agree
+ Disagree
Total

Public Sector
Total
% Total

Table 1V
Infrastructural facilities available are adequate for the growing trend in the
market.
Strongly Disagree Strongly Total
Agree Disagree
Stocb Exch. Market 25
Stock Brokers 24
Private Sector 2 24
Public Sector 3 25
Total 5
% Total 5.1

Table V
 Infrastructural limitations in Nigerian capital market insulate many
investors from Broker - dealers.
SIN Sub-sector Agree Strongly Disagree
Agree Disagree
1. Stock Exch. Market 11 8 6 25
2. Stock Brokers 12 9
3. Private Sector 7 5
4 Public sector 8 9
Total 38 31

Table V1
Screen based trading will not in anyway enhance the operations of the
Nigerian capital market.
S/N Sub-sector Agree Strongly
Agree
I Disagree Strongly Total
Disagree
1. Stock Exch. Market 4 3 12 6 25
2. Stock Brokers 1 2 24
3. Private Sector 8 9 24
4 Public Sector 7 6 25
II Total 1
I
20
I % Total 1 20.4

Table V11
 Dqository transfer and clexing systems in place in the Nigerian capital
market requires improved application of technology.
S/N Sub-sector Agree Strongly Disagree Strongly Total
Agree Disagree
1. Stock Exch. Market 15 5 1 4 25
2. Stock Brokers 12 7 3 2 24
3. Private Sector 10 8 5 1 24
4 Public Sector 7 12 4 2 25
Total 44 32 13 9 98
% Total 44.9 32.6 13.3 9.2

Table VIIl
Unorthodox perception of stock valuation contributed to slow and
confusing pric movements of major stocks in the market.
Sub-Sector Agree Strongly Disagree Strongly Total
Agree Disagree
9 o c k Exch. Market 16 7 - 25
Stock Brokers 14 8 2 24
Private Sector 10 5 5 24
Public Sector 11 6 5 25
Total 51 26 12 98
O/o Total 52.0 26.5 12.2 100

Table l X
 The low trading volume is attributed partly to reluctance to sell shares.
S/N Sub-Sector Agree Strongly Total
Agree Disagree
--
1. StockExch.Market 13
2. Stock Brokers 10
3. Private Sector 9
4 Public Sector 10
I Total

'1 able X 6

Information technology docs not play much role in the operations of the
capital markc:.
Sub-Sector Agree Strongly Disagree Strongly Total
Agree Disagree
-
Stock Exch. Morkct - 2
Stock Brokers 1
Private Sector 4
Public Sector 3
Total
-
% Total

Table X l
Distribution of aggregate responses for all sections by sectors.
/ S/N 1 Sub Sector Responses

H
1 1
2.
Stock Exchange Markets
Stock Brokers
Non- Adequate
203
197
Adequate
47
43
1 3. 1 Private Sector 158 82
Public Sector 1 74 76
Total 732 248
Grand Total 980

Distribution of the responses of the sampled population by test questions.

RESPONGES
Agree Disagree
The 'Buy and Hold' attitude of Nigerian Investors 27 71
Capital gaiu., and Security of Investn~ent 74 24
!'he number and range of available Securities 32 66
I'he infrastructural facilities available 8 90
Infrastructural limitations insulate many investors. 69 29
Promotion of Screen-Based trading in Stock and 38 60
Shares. 76 22
Depository transkr and Clearing Systems. 77 21
Unorthodox perception of Stock Valuation 75 23
Low trading volume in the Nigerian Capital Market. 21 77

1Information technology does not play much role

4.1.1 COMPONENT BAR CHART
The component Bar- chart below is used to express the performance of
the Nigerian Capital market vis-a-vis the impact of informalion technology in
place. 'The arrangement is by sectors according to the judgement of the sampled
population.
220
200
180
160
140
120
100
80
60
40
20
0

Y F : \ ~ ~ A d e q u a Responses
te I I Non-Adequate Responses

4.1.2 A PIE CHART

The pie chart below gives a picture of aggregate assessment of all the sub-
secwrs among the sampled population in respect of the impact of information
technology on the Nigerian capital market within the period of review (1980 -
I 999).
It is therefore of all the responses in relation to adequate and non-
adequate rezponse which is expressed as:
(b) Adequate = 2~8x100 -25%
080

The pictorial representation is given as:

Note that the adequate responses are those who feels that inforAation
technology has made serious impact in the performal~ceof Nigerian capital market
while the Adequate responses are those who feels that information technology
nced be improved in the system for efficient operation and they represent 75% of
the sampled population.

4.2 DATA ANALYSIS

In the course OF analysing the data used in the research work, the
researcher concentrates on visual information, making use extensively of
percentage and absolute iigures in the various tables drawn above from which
conclusion will be drawn.

4.2.1 The 'Buy and Hold' Attitudc of Nigeriim Investors

By the result of the interview on the above as indicated in table I, it is clear
that majority of the sampled population holds the view that the 'buy and hold'
attitude o r Nigerian investors in the capital markct is not in the bcst interest of the
market. To support this claim, vide the result of the interview whereby 71 persons
out of 08 or 72.4%of the sampled population disagrees with that attitude while 27
dut of 98 people representing 27.5% of the population supports that view.

4.2.2 Capital Gains and Securitv of Investment Appear More Crucial

Majority of the stockholders in Nigeria are more interested in the security
of their investment and amount of gain made per capital investment than dividend
motivation and t h e earnings thereon. The conclusion was drawn based on the
result of the interview held on that, where by 75.5% of the interviewed gave that
assun~ptionpass mark while 24.5 scored it below pass mark.

4.2.3 The Number and Range of Securities and Volume and Value of b

Referring to the information in table 111, while 32 out of 98 of the sampled

population representing 32.6% were of the view that there has been adequate
information in the Nigerian capital market in respect of number and range of
securities available for trading and as well, the volume and value of such
securities, 67.4% of the population holds a contrary view that such information is
a major cause of worry in the market.

4.2.4 Infr;~structuralFacilities Available

In table IV above, majority of the respondents feel that the infrastructural
facilities in place in the Nigerian capital market should be improved upon to meet
the growing trend in the market. This claim is supported by the result of the
i~tciviewheld with the selected sub-sectors where only 8 out of 98 representing
8.2% of the population responded in favour while 90 others or 91.8% were
against .
4.2.5 Infrastructursl Limitations
Majority of respondents in all sectors agreed that there exists problem of
infrastructural limitation in the Nigerian capital market and that it affects many
investors from investing adequately in the market. In the Stock Exchange Market
sub-sector, 19 out of the 25 persons interviewed spoke in favour of infrastrrictural
limitations as major constraint to investors while only 6 persons disagreed and
the rcst responses from the other sub-sectors continued in that progression. In all,
69 out of the 98 p.ersons or 70.6% of the population agreed with the statement of
infrastructural linlitatioils as a hitch to investors in "Broker-dealers" relationship.

4.2.6 Screen Based Trading

Here, majority o l the responderils representing about 61.2% of the sampled
population sounds optimistic that screen based trading will enhance the operations
of the Nigcrian capital market while the remaining 38.8% holds a contrary view.

4.2.7 Depository Transfers and Clearing System in Place

Tab111 VIT above, reveals that 76 out of the 98 persons interviewed feel that
some of the activities in the capital market, like depository transfers and clearing,
requires improved application of technology. On the other hand 27 persons fkel
that the lechnological standard in place is okay as far as such activities are
concerned. However, on a closer observation, it was discovered that there was a
tie of opinion among the respondents of Stock Brokers' sub-sector and the public
scctor in the Grst two columns where they both scored 19 each.

4.2.8 Unorthodox Perception of Stock Valuation

In view of the judgement of the sampled population in table VIII, the slow
and confusing price movement in the Nigerian capital market in rcspect of major
stocks over the years was due to the unorthodox perception of stock valuation.
The evidence is clearly exposed in the judgement tablc where 78.5% of the
respondents maintained that unorthodox perception of stock valuation was
responsible for the slow and confusing movement of prices of major stocks. The
remaining 21.5% of the respondents on the contrary, feel that the confusing and
slow price movement of major stocks was not as a result of unorthodox perccption
of stock valuation.

4.2.9 The Low Trading Volume

There was a majority opinion on the view that the low trading volume in
the Nigerian capital market is partly due to reluctance to sell shares. This is
obvious from table IX where 75 out of the 98 respondents from the saplpled
population shared the same vicw while the remaining 23 respondents were on the
contrary.

4.2.10 Information Technology does not Play Much Role

I11 ormation technology has a major role to play in the development of
Nigerian capital market. To support this view, vide the judgement of the sampled
population in table X w1lcl.e an overwhelming majority of 77 out of 98 people
intcrviewed, representing 78.5% of the population disagreed with the notion that
"informdion technology does not play much role in the operations of the capital
market". On the othcr hand, a minority group numbering 21 or 21.5% of thc
sampled population feel that information technology does not have much rolc to
play in the operations of thc Nigerian capital market.

4.2.1 1 Analysis of Tablc XI and XI1

 Table XI is a record of' the d~stributionof aggregate responses for all
sections by sectors. In the Stock Exchange Market Sector, 203 negative scores
was credited to the Nigerian capital market performance in relation to information
technological input within the period of review as against a positive score of 47.
The same wide margin of negative responses were equally recorded in the
remaining 3 sub-sectors as follows: Stock Brokers; 197 negative against 43
positive; private s a w : 158 negative against 82; public sector: 174 negative
against 76 positive scores. Generally, the table shows that an aggregate of 732
representing 75% of the total of 980 responses indicated failure in respect of the
Nigerian capital market vis-a-vis the contributions of information technology. On
,!;c other hand, an aggregate of 248 or 25% of 980 responses indicated success of
the market. By the general assessment, inlormation technology so far &as not
made any remarkable impact in the development of the Nigerian capital market.
Table XI1 displays Ihe result and the distribution of responses of the entire
sampled population by test questions. This table reveals the level of agreement
anlong the respondents by test questions. Looking at number 4 which is the issue
of the atlequacy of infrastructural facilities available in the market, the responses
shows thc highest level of agreement where 90 persons representing 91.8% of the
people interviewed disagreed with the view that infrastructural facilities currently
in place is adequate. On the other hand, only 8 persons representing 8.2% of the
population scored it a pass mark. In all, there is no tally of opinion and there is
a l w a ~ rclear
~ indication of majority's opinion. It is either a glaring pass mark or
failure to each view.

4.3 TESTING OF HYPOTHESIS

4.3.1 Ho - The 'Buy and Hold' attitude of Nigerian investors has
helped the clev~'1opmentand growth of the Nigerian capital
market.
I-t1- The 'Buy and Hold' attitude of Nigerian investors has not
help the developmenl and growth of the Nigerian capital
market.
Test Technique
x2. -
- (oi - ei)2
ei
--
- Frey uency
where x2
Oi = Observed fiequency
--
- Expected frequency
ei
Level of significance -- 0.05
Degree of freedom = (C - 1) (R - 1)
-
- ( 2 - 1)(2 -1 )
-
(I-) (1)
- 1
Decision IWc - "Accept Ilo if tabular value is greater than calculated value,
otherwise reject and accept 111"
Question 1 ' is used for this test and it goes as below:
--
Response 0i ei oi-ei (oi - ei12 (oi - ei)2 Calculated value
ei
Agree 27 49 -22 484 9.87 19.74
Disagree 71 49 22 484 9.87
-.

Tabular value = 3.87 1.

Calculated value = 19.74
 Since the calculated value is greater than the tabular value, 1 have to
accept FI I .
4.3.2 f lo - 'The problem of imparting depth and breath of the market has
not been a major problem facing prospective investors into the
Nigerian capital market.
HI- The problem of imparting depth and breath of the market has
been a major problem facing prospective investors into the
Nigerian capital market.
Response oi-ei (oi - ei12 (oi - ei)2 Calculated value
ei
2.89 5.89 1 1.78
Disagree 49 1 17 2.89 5.89

Tabular value = 3.87 1.

Calculated value = 11.78

Since calculated value is greater than tabular value. 11, has been accepted.

4.3.3 Ho - The abseilcc of screen based trading in stock and shares does
not affect the devdopnlent of the market.
l i l -,The absence of screen based trading in stock and shares does
affect the developn~entof the market.
Response 0i ei oi-ci (oi - ei)2 (oi - ei)' Calculated value
ei
Agree 38 49 -1 1 121 2.46 4.92
Disagree 60 49 II 121 2.46

Tabular value - 3.87 1.

Calculated value = 4.92
 With the above rcsult, calculated value is greater than tabular value, so, I
accept EI1.

4.3.3 Ilo - Infrastructural inadequacies does not frustrate the appropriate

technology to solve the Nigerian capital market problems.
Ho - lnfrastructural inadequacies frustrates the appropriate
technology to solve the Nigerian capital market problems.
Response of ei oi-ei (oi - ei12 (oi - ei)2 Calculated value
ei
Agrce 8 49 -4 1 1681 34.3 68.6
Disagree 90 49 41 1681 34.3

b
Tabular value = 3.87 1.

Calculated value = 68.6

The calculated value is greater than tab11l:uvalue, so, I accept 1-11.

 CHAPTER FIVE

5.1 SUMMARY OF FINDINGS, RECOMMENDATIONS AND

CONCLUSION
5.1.1 Summaw of Findinps
The Nigerian capital market is a viable market for sourcing long-term
iinance for investment purpose through the sale and purchase of securities.
However, it has been observed that the Nigerian capital market has shown
tremendous growth over the years.
Despite the observed growth, the performance of the market has been
described as unsatisfactory when compared with contemporary emerging markets.
A more detailed investigation reveals that the non-performance of the mdkket is
traceable to pool information technological know how.
There has not been adequde supply of securities for trading on throughout
the period of review and this bothers on awareness problem especially on the part
of investors. Low level of market automation has been observed in the Nigerian
capital n arket and this contributed to the low trading volume experienced so far
in the n~arkct.

5.1.2 Recommendations
In view of the performance of the Nigerian capital market which has been
below expectations, ways of putting in place an enhanced information system in
and around the market for improved performance includes:-
(i) Government should make teclmological tools (telecommunication and
computers) cheap and readily available to average Nigerian. The acquisition
cost could be brought down by reducing cost of importation through subsidies.
(ii) The researcher also recommends training programmes on the use of
computers for the operators in the capital market to have indept knowledge of
how to surf the internet. These training programmes could take the form of
intensive seminars and workshops that should be jointly sponsored by the
Go\ zrnment and Corporate bodies. Again, the workshop/seminars should be a
continued process until a remarkable impact is made.
( 5 ) As a follow up, penetrating awareness should be created through both
electronic and print media on the operations and importance of investing in the
capital market to the growing economy. The investment does not just end up
in buying and holding stocks or shares but engaging in the actual trading from
time to time through enhanced information network.
(iv) According to the researclw, Government should come in again by spdhsoring
installation of informn~ioncentres in commu~litieswhere information about
the capital market could be sought with ease. To further improve on the
information requirement, each quoted company should have a website in the
intzriiet which is periodically updated. With this, individuals or opcrators
could 1 ither from their ofiiccs, homes or inforn~ationcentres hook-on the web
of any company or organisation for up-date and detailed infornlation about
their performance.
(v) Other infkastructural facilities like electricity, postal services, etc. should be
adequately reformed and transformed to meet the international standard for
smooth running of the market and to avoid distortions along the line. The
issuc of power is very important because both the telecommunication,
net~orking,internet and other electronidprint media services can not function
well under the frustrating electricity supply currently expericnccci in Nigeria.
(vi) Finally, Government should define an Information Technology Policy.
5.1.3 CONCLUSION
Having made the above presentations, the researcher feels at the cnd of the
day that the reader must have been exposed to the major problems militating
against the smooth operation of the Nigerian capital markct.
As earlier mentioned, there is a widespread recognition that what is
loosely called a knowledge - based economy is the way of the future and that the
orgmisers of the capital market in Nigeria, businesses and the society at large,
must adopt it to be on the right footing.
1: ,hould be understood that there is a change afoot in the world- that the
internet revolution has come to stay and that it does not recognise national
boundaries.
I repeat, with these rapid advancements in information technoloay; the
Nigerian capital markct should go network and also hook-up with the intcrnet for
better servi~csto its nun~erol~s
clients and for economic development.
The Nigerian Stock Exchange presence on thc internet would increase
trading tremendously. It also provides trading opportunities to Nigerians abroad.
?'he abilitj to buy stocks and watch the market on-line is very convenient to many
pcople. This will also create huge foreign reserve for the exchange as well as
influence foreign companies to list their companies.

APPENDIXES
A. BOOKS
Emekekwue, Patrick. Corporate Financing Management, 2"d Edition. Zaire:
Publication of BASE., 1996.

Ilicks, J. A theory of Econon~icHistory. Oxford London: Claredon

Prcss: 1969.

Modum, Uche. Management Information Systems. Enugu, Nigeria:

Fourth, Dimension Publishin;; Company Ltd; 1995.

Morton, Oliver; ed. l'he Economist - "Going Digital", Revised Edition.

London:
Profile Books, Ltd; 1998.

Okahr,FrancisD. Investment Decisions, Evaluation of Projects and

Securities. b
London: Cassel Ltd; 1983.

Woolcott, J ,isbeth A; et al. Information Technology - The Future. I-Iongkong:

Macmillan Press Limited; 1985.

JOURNALS AND MAGAZINES

Ahn~ad,Milkhtar. "The Itole of Capital Markct Operations in the Privatisation
Process". CBN. Bullion, Vol. 10, No. 2 (AprilIJune 1986):
23 - 23.

Ahinifesi, I:. 0 . "The Role of Capital Formation and Industrialisation in

Econon~ic Development" CBN Bullion Vol. 6, No 1
(Jan./Feb. 1993): 10

0-jo, M. 0, "Developing Nigerian Industrial Capabilities 'Through

Public
Quotations as a Key for Sustainable Economic Growlh".
CBN Bullion; Vol. 22, No. 3 (JulyISept. 1998): 5 - 1 1 .

Oho, G. C. "Guide to Sustainable Economic Growth". CBN Econon~ic

&: Financial Review Magazine; Vol. 28, (June, 1990): 49 -
51.
Onyido, Bell;; C. "Institutional Frame wotk for Financial Sector
Development.

CBN "Reform of the Nigerian Capital Market".

CBN Annual Report and Statement of Account (Dec.
1997): 39 - 40.

C. UNPUBLISHED DOCUMENTS ( SEMINAR PAPERS,

I)ECREES/AC'I'S AND LECTURE NOTES)

Adeyemi K. S. Options for Effective Development of the Nigerian Capital

Market". NES Seminar Paper ( I 998).

FRN Securities and Excl.lange Commission Act". Lagos (1 988).

1: RN "Privatisation and Commercialisation Act"; Lagos; ( I 990).

"Fcreign Exchange Monitoring and Miscellaneous b

Provisions Decree"; Lagos. (1995).

F ICN "Nigerian Investment Promotion Decrec"; Lagos. (1 995).

FRN "Bureau of Public Enterprises Decree"; Lagos ( 1 995).

Okigbo, 1 . Committee Report on Finaxial System, Lagos (1 976).

Onosode G. 0 . "Capital Market and Nigerian Economic Developmcnt";

NES Seminar Paper ( I 998).

Mgboh P. C. "ll~fonnationOverload". Lecture Paper, (1999): 1 - 3.

Mgboh 1'. C. "Information Audit". Lecture Paper, (1999): 6 - 7.