Capital Market Reforms And Investor’s Confidence In Nigeria
International Journal of Social Work and Development Studies, Vol. 2, No. 1, 2026
Published: 2026/07/23
DOI: https://doi.org/10.67007/ijsds-2026-05d1b0d1
Abstract
This research investigated the effect of capital market reforms on investor confidence in Nigeria, using market capitalization as an indicator of reform outcomes and the All Share Index as a proxy for investor confidence. The study covered three major reform periods, namely the liberalization and modernization reforms from 1999 to 2004, the consolidation and post crisis reforms from 2005 to 2010, and the Master Plan and Central Bank of Nigeria recapitalization reforms from 2015 to 2025. Secondary data were analyzed using descriptive statistics and ordinary least squares regression technique. The outcome showed that market capitalization under the liberalization and modernization reforms exerted a strong positive and statistically significant effect on investor confidence. The consolidation and post crisis reforms showed a positive but statistically insignificant relationship with investor confidence, indicating limited direct impact during the period. Furthermore, market capitalization under the Master Plan and recapitalization reforms demonstrated a strong positive and statistically significant influence on investor confidence. The study concluded that well structured and consistently implemented capital market reforms enhance investor confidence by improving institutional credibility, market depth, and financial stability. It recommended sustained regulatory enforcement, continuous recapitalization, technological innovation, and policy consistency to strengthen long term investor confidence in Nigeria’s capital market.
Keywords: Capital market reforms, investor confidence, market capitalization, All Share Index, liberalization reforms.