DOI: 10.36347/sjebm.2015.v02i08.0011

Pages: 856-865

Capital markets in developed economies by undertaking a series of reforms thought to foster development of domestic securities markets. Financial reforms are primarily driven by the need to achieve the objective of consolidation in the financial institution like other emerging economies. This study however assesses the effectiveness of financial sector reforms on the stock market development in Nigeria. Data for the study was collected from CBN statistical Bulletin from 1996 to 2013. Data were analyzed and tested with t-test Paired Samples Statistics. Result shows that there is a significant relationship in the pre and post stock market capitalization. Therefore there is a significant relationship between stock market development, financial sector reform and economic growth. Also that financial sector reforms have improved financial market liberalization to enhance investors’ confidence. The researchers recommend that the reforms should be in a form that will restructure the entire financial sector, in order to achieve desired economic goals.