Published Article

ABSTRACT

This study therefore seeks to investigate and determine the size and growth of the bond

market determinants on the development of the bond market in Nigerian economy. Descriptive research design was adopted for the study. The study was conducted in Akwa Ibom State, Nigeria. The population of the study comprised all the annual data of all the variables for the period of ten (10) years. The total number of data which will constitute the population in this study is fifty (50). Convenience sampling technique was used to select 10 respondents which constituted the sample size for the study. The Main Instrument used in this study was a questionnaire titled “Bond Market and the Nigeria Economy Questionnaire” (BMNEQ)”. Face and content validation of the instrument was carried out to ensure that the instrument has the accuracy, appropriateness, completeness and the language of the study under consideration. Cronbach Alpha technique was used to determine the level of reliability of the instrument. The reliability coefficient obtained was 0.84 and this was high enough to justify the use of the instrument. The researcher subjected the data generated for this study to appropriate statistical techniques such as descriptive statistics and simple regression. The test for significance was done at 0.05 alpha levels. Hence, the study concluded that bank size, money supply and external debt are seen to be the most important and significant drivers of total bond market size in Nigeria. Also, level of economic development, budget deficit and bank size are significant determinants of government bond market size in Nigeria. It was recommended that the developing the capacity of the banking sector to provide more qualitative and productive credit, channeling a substantial part of the existing pension funds towards investing in bonds, balancing bank finance and bond markets, and restricting finance raised through external borrowing to infrastructural projects.

KEYWORDS: Bond market, Size and growth, Nigeria Economy