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PUBLIC DEBT MANAGEMENT IN NIGERIA

ABSTRACT

This study was conducted to identify the sources of capital and the cost of packaging those

funds in the Nigerian Capital Market. It examined the institutional framework for

packaging capital and debt issues, highlighted the role of financial intermediaries and some

recent development in the Nigerian Capital Market.

To determine the cost of raising funds in the Nigerian Capital Market, data were collected

by the administration of questionnaires, in addition, personal interviews were held with

The Nigerian Stock Exchange officials, The Securities and Exchange Commission, Chief

Executives of Issuing Houses and Stock broking Finns, Accountants, Lawyers. Journals

of the Central Bank of Nigeria as well as Seminar and Workshop papers and textbooks

written by scholars and renowned authors were consulted.

The study revealed that the Nigerian money market is well developed and accessed easily

by fund raisers. The cost of funds in the capital market was established to average 10%,

while it may cost a company up to 20% to raise funds in the market. This cost was found

to be high and discouraged small and medium scale enterprises.

It is suggested that as a way of reducing the cost of raising funds in the capital market, the

Regulatory authorities should review downwards then registration and listing fees. It is

further suggested that more stock broking and issuing houses should be licensed and the

stringent condition attached for granting quotation on the Stock Exchange should be

reviewed. Issuers of securities should make use of competitive bidding to select

intermediaries and market operators.

TABLE OF CONTENT

Title page- – – – – – – – – i

Approval page – – – – – – – -ii

Dedication – – – – – – – – -iii

Acknowledgement – – – – – – – -iv

Abstract – – – – – – – – – -v

Table of content – – – – – – – -vi

CHAPTER ONE

INTRODUCTION – – – – – – – -1

1.0 Background of the study – – – – -1

1.1 Statement of the problem – – – – -5

1.2 Purpose of the study – – – – – -6

1.3 Significance of the study – – – – -8

1.4 Research questions – – – – – -9

1.5 Scope of the study – – – – – – -10

CHAPTER TWO

LITERATURE REVIEW – – – – – – -11

CHAPTER THREE

Research methodology – – – – – – -39

Design of study – – – – – – – -40

CHAPTER FOUR

Presentation, analysis and interpretation of data – -48

CHAPTER FIVE

Summary of findings – – – – – – -60

Conclusion – – – – – – – – -61

Recommendations – – – – – – – -62

Suggestions for further research – – – – -64

References – – – – – – – – -65

Appendix I – – – – — – – – -68

Questionnaire. – – – – – – – -69

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