International Journal of Social Science and Economic Research ISSN: 2455-8834 Volume:02, Issue:04 www.ijsser.org Copyright © IJSSER 2017, All right reserved Page 3034 IMPACT OF NIGERIAN CAPITAL MARKET ON ECONOMIC GROWTH: A CO-INTEGRATION APPROACH 7/12/2016 1 MUSIBAU OLUWASEYI HAMMED, 2 WALIU OLAWALE SHITTU, 3 HAMMED AGBOOLA YUSUF, 4 SA’AD BABATUNDE AKANBI 1 School of Economics, Finance and Banking, College of Business, Universiti Utara Malaysia 2 School of Economics, Finance and Banking, College of Business, Universiti Utara Malaysia 3 PhD Candidate, School of Economics, Finance and Banking, College of Business, Universiti Utara Malaysia 4 Postgraduate Student, Department of Economics, University of Ilorin, Ilorin ABSTRACT This study examined the impact of economic growth and development in Nigeria using vector error correction model to examine the long-run relationship between the capital market development and economic growth, the study used annual series from 1970 to 2013. Variables such as Gross Domestic Product (GDP), Market Capitalization (MCAP), Total New Issues(TNI and Value of Share Traded Total Listed Equity (VST) are used for the study. The empirical results indicate a long-run relationship between the capital market development and economic growth in Nigeria. Meanwhile, ECMt coefficient confirmed that, there is long run equilibrium between GDP and Capital Market Variables i.e at every 1 million increase in Capital Market Variable, GDP will increase by 0.085 million since the speed of adjustment to equilibrium is 0.0857. The Granger causality results at lag 2 showed that market capitalization and value of shares traded granger causes real GDP with no reverse or feedback effect. Keywords: Gross Domestic Product, Market Capitalization, Total New Issues, and Value of Share Traded Total Listed Equity. JEL Classification: C22,C58,D53 1.0 INTRODUCTION Capital market is an engine of economic growth and development globally, Nigeria inclusive. Capital market is made up of markets and institutions which facilitate the issuance and secondary trading of long-term financial instrument. The history of Nigeria Capital Market could be traced