Mutalib, AnifowoseIbrahim, Hassan2023-12-102023-12-102015-11-11Blume, L., D. Easley, & M. O'Hara (1994). “Market statistics and technical analysis: the role of volume,” Journal of Finance 49(1), 153-181. Bodic, Z., A. Kane & J. A. Marcus (1999). “Investment”, 4th ed., USA, McGraw Hill Companies Inc. Chen, Firth & Yu, (2004). “The Price-Volume Relationship in China’s Commodity Futures Markets,” The Chinese Economy, 37(3), 87-122. Chen, G.M. Firth & O. Rui, (2001). “The Dynamic Relation between Stock Returns, Trading Volume and Volatility,” The Financial Review,36(3) 153-174.https://keffi.nsuk.edu.ng/handle/20.500.14448/672Return-volume relationships are of common interest as they may unearth dependencies that can form the basis of profitable trading strategies, and this has implications for market efficiency. This study investigates the dynamics of relationship between trading volume and returns of Nigerian capital market. The study employs Granger causality tests to examine dynamic (causal) return- volume relation using daily stock data of 27 equities listed on the floor NSE for the period January 2009 to December 2010. The empirical results indicate, in general, a mild causal relation between stock returns and trading volumes for individual assets but on the overall, we find a weak evidence of a dynamic (causal) relation running from trading volume to market return. Based on the findings, the study recommends, among others, that other economic variables such as inflation rate, interest rate and firms’ characteristics such as sectorial and industrial classification should be considered when forecasting short term returns of Nigerian capital market.enTrading Volume, stock Returns, Dynamics and Granger CausalityArticle