The Nexus between Capital Market and Power (Electricity) Sub-Sector in Nigeria
The study examines the nexus between capital market and power (electricity) sub-sector in Nigeria, 1970- 2012. Using secondary data, the ordinary least square method, co-integration test and error correction method; the study reveals that there is a long – term relationship between capital market and the electricity sub-sector in Nigeria. However, long –term funds from the capital market has not been channelled to the power sector thus contributing little or nothing to generation, transmission and distribution of electricity during the period under review. The study recommends that the capital market operators and regulators should encourage electricity companies to list on the exchange by relaxing their conditions, reduce fees, and expand their offerings. Also, government to fast track on going – reforms in the sector that will enable private sector participate effectively.
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