© 2024 IJNRD | Volume 9, Issue 8 August 2024| ISSN: 2456-4184 | IJNRD.ORG IJNRD2408139 International Journal Of Novel Research And Development (www.ijnrd.org) b482 c482 IMPACT OF ECONOMIC GROWTH AND SELECTED MONETARY POLICY ENVIRNMENTS ON CAPITAL MARKET PERFORMANCE IN NIGERIA IORTYER AONDOVER DOMINIC Federal University Lokoja, Kogi State Nigeria Email: dominic.iortyer@fulokoja.edu.ng ORCID ID 0009-0002-3002-2676 & MUSA DANIEL OJONAGO Federal University Lokoja, kogi state Nigeria Email:Daniel.musa@fulokoja.edu.ng Abstract Capital market performance is influenced by a variety of factors; consequently, this article examined the impact of certain macroeconomic settings, as measured by the real economic growth (RGDP), real interest rate (INT), and real exchange rate (EXR), on capital market performance in Nigeria. Market capitalization (MCAP) serves as a proxy for capital markets. Estimation was based on annual time series for the variables spanning 1986– 2023. The dynamic Autoregressive distributed lag (ARDL) technique was utilized to calculate effects of the regresors on the regresand in both the short and long run. The results showed that the capital market reacts both short- and long-term to shifts in macroeconomic conditions. In light of the results,the study advocated desired economic policy actions that could improve the stable macroeconomic environment for long-term growth and performance of Nigeria's capital markets. Key words: Market capitalization, Capital market, real economic growth rate, Interest rate, Exchange rate. 1.0 INTRODUCTION The impact of macroeconomic variables on capital market performance is relevant to policy in both industrialized and emerging market nations. This proved the nexus between macroeconomic variables and capital market operation. It has been a major discourse within the financial economic’ circles, investors, policymakers and academics. (Wycliffe and Peter, 2019). This is because, a stable and conducive macroeconomic environment stimulates capital formation which is critical for the development of capital market. Most capital markets of emerging economies according to Augusto and Sergio (2016), are not yet sophisticated due to the fact that, such economies have difficult macroeconomic terrain which is often characterized by policy inconsistency and political instability. The global financial crisis, which resulted in a capital market collapse, has focused attention on Nigeria's financial industry. This has resulted in an abundance of research and discussions about the capital market and