The Effect of Some Macroeconomic Variables on Stock Market Performance in Nigeria

Deborah M. Adesokan, Olatokunbo A. Oluwayemisi, Oluwayemisi K. Adeleke and Segun M. Ojo
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Deborah M. Adesokan: Department of Economics, Redeemer’s University, P.M.B. 230, Ede, Osun State, Nigeria
Olatokunbo A. Oluwayemisi: Department of Economics, Redeemer’s University, P.M.B. 230, Ede, Osun State, Nigeria
Oluwayemisi K. Adeleke: Department of Economics, Redeemer’s University, P.M.B. 230, Ede, Osun State, Nigeria
Segun M. Ojo: Department of Economics, Redeemer’s University, P.M.B. 230, Ede, Osun State, Nigeria

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 15, 471-483

Abstract: This study critically examined the effect of some macroeconomic variables on stock market performance in Nigeria from the years 1993-2020 using the Auto Regressive distributed lag (ARDL) technique. The macroeconomic variables used in this study are inflation (INF), gross domestic product (GDP), interest rate (INT), exchange rate (EXR) and money supply (MS). This study observed that INF, which is an important variable in the model, affects Stock market performance negatively. It was also observed that GDP has a positive relationship with Stock market performance and it is statistically insignificant which implies that increase in gross domestic product leads to a decrease in stock market performance. The study also observed a negative relationship between exchange rate and stock market and is statistically insignificant which means that an increase in exchange rate would reduce stock market performance. Interest rate also had a positive relationship with stock market performance and is statistically insignificant which implies that an increase in interest rate would reduce stock market performance. Money supply was observed to have a positive relationship with stock market performance and it is statistically significant and an increase in money supply would lead to an increase in stock market performance.

Date: 2025
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