1 2 Mungadi, Dauda Danladi, Nwala, Maureen Nneka, 3Abubakar, Idris Ayokanmi and 4Onibiyo, Ezekiel Rotimi

  • amr amr
Keywords: Foreign Portfolio, Foreign Workers Remittances, Gross Domestic Product Growth Rate, Stock Performance


The effect of macroeconomic variables on stock performance has attracted considerable research
interests. This is because macroeconomic variables interplay serves as barometer for the economy
measured by stock performance. This study examines the effect of selected macroeconomic variables
on stock performance in Nigeria for the periods of 1983 to 2018 using Autoregressive Distributed Lag
technique to analyse the data. The study proxy stock performance with total market capitalisation
while selected macroeconomic determinants used are foreign workers remittance, foreign portfolio,
broad money supply and Gross Domestic Product growth rate. The study tests for stationarily of the
time series secondary data with Augmented Dickey Fuller Test and the result of the results of the test
suggest that all the data are stationary at first difference, except Gross Domestic Product growth rate
that was stationary at level. The study found out that foreign workers remittances, foreign portfolio
and broad money supply have significant positive effect on stock performance while Gross Domestic
Product growth rate has an insignificant effect on stock performances. Based on these findings, the
study concludes that the selected macro determinants should attract government attention in
Nigeria. In the light of the outcome of the study, the study recommends that the Central Bank of
Nigeria should continue to design frameworks and policy that would promote and retain portfolio
investment in the country and also ensure further reduction in the cost of remittance into the country.
That Securities and Exchange Commission and Nigerian Stock Exchange should strive to improve on
market capitalization of stock market by attracting listing and increased trading activities with a
platform that put attractive financial assets in the global market.