Udenwa, Theresa A.Umar, Hassan Umar2023-12-102023-12-102014-10-13Akinsulire, O. (201 \):FinancialManagement, Ceemol Nigeria Ltd., Lagos. • CBN (2008y.Statistical Bulletin; Central Bank of Nigeria, 50th year Anniversary Edition. CBN (2010): Statistical Bulletin; Central Bank of Nigeria, 5ffh year Anniversary Edition. December Vol. 21”. Eyo, E. and Esso, I.E. (2008): Stock Market Performance and Economic Growth in Nigeria: A casualty investigation. Global Journal of Social Sciences Vol. 7 No. 2, pp. 85 - 91”. Goodie, M.I. (2009):Making the Nigerian Capital Market an Engine for Economic Development: The Nigerian Stockbroker Vol. I January - December. Kalim, R. (2010): Impact of Foreign Direct Investment on Stock Market Development: The case of Pakistan. 9th Global Conference on Business and Economics”. Kofi, A.C. (1998):Analysis of Factors Affecting the Development of an Emerging Capital Market: . The case of the Ghana Stock Market. Africa Economic Research Consortium (AERC) Research Paper. 76”. '. ' Krugman, O. (2009):Intemational Economics: Theory and Policy, Pearson International, Boston. Nwankwo, G.O. {\99\):Money and Capital Markets in Nigeria Today, University Press, Lagos. Nyong, M.O. (2003):Capital Market Development and Long-run Economic Growth: Theory, Evidence and Analysis. First Bank Review, December Vol. II” Pandey, I. M. (201 \):Financial Management, Vikas Publishing Huusc, PVT Ltd. Todaro, iJ.M. and Stephen C.S. (2009):Economic Development, Addisson - Wesley.https://keffi.nsuk.edu.ng/handle/20.500.14448/925ArticleThe Nigerian capital market as the long-term end of the Nigerian financial system has the potentials to contribute to the development of the economy. The question then which this study sought answers to was: - To what extent has the capitai market been able to accomplish this? Using such variables as per capital income* unemployment rate and poverty rate to estimate economic development within the years 1999 - 2010* it was found that the capital market impacted positively on the country’s economic development. Also it was established that the capital market is facing quite some challenges like poor business environment, corruption and sub-optimal level of transparency which need to be addressed for the market to contribute more toward the country’s economic development.enCapital Market, Economic Development, Stock Markets, Financial System, Nigerian Stock ExchangeArticle