MACROECONOMIC DETERMINANTS OF THE SECURITY MARKET DEVELOPMENT AND ITS IMPACT ON PRODUCTION IN NIGERIA.

Production is fundamental to the expansion and development of the Nigerian economy. The security market enhances the productive capacity of the economy, it is an entity whereby debt, and equity instruments, are traded. It promotes the flow of capital from excess entities to deficit economic units in order to increase investment and output. The major aim of this research is to investigate the determinants of security market development and its implication on production in Nigeria. Hence, Interest rate, savings, as well as public investment are the various macroeconomic determinants of the security market which are also investigated in this study. The research is designed to span a 40-year scope of study, from 1981 through 2020. The research data were compiled via the Nigerian central bank statistical bulletin and the world development indicator. Augmented Dickey-Fuller unit root test was utilized to determine the appropriate methodology for the study analysis estimation. The model data were estimated using the Auto Regressive Distributed Lag (ARDL) technique of analysis. The research found that interest rate had a negative correlation with the growth of the Nigerian security market. This is relative to the country's economic state of high interest rate, which hinders investors from borrowing additional money to invest or participate in the security market. Savings as well as public investment are revealed to impact the security market positively. The security market enhances production in the long run although its impact is poor due to low investment within the economy. However, the study recommends financial institutions to retain interest rate low so as to induce investors seeking additional capital and to engage in the security market. Savings, and government investments in the securities market, should be promoted in order to aid the economy develop in terms of production