The “study has examined the capital market performance and economic growth in Nigeria for the period 1985 to 2023. Time series data were employed from the CBN statistical bulletin and Vector Error Correction model (VECM) was used to analyze the data. Findings revealed that market capitalization (MCAP), All Share Index (ASI) and interest rate (INT) all had a negative impact on the growth of the Nigerian economy in the short run. However, in the long run, these variables exerted a positive and significant impact of the growth of the Nigerian Economy. The study thus concludes that capital market plays a significant role on economic growth in Nigeria in the long run. It is thus recommended amongst others, for the Nigerian government to put in efforts to encourage/woo more investors into the capital market as this will boost activities in the market thereby causing market capitalisation to go up thus creating volumes for more jobs, increasing the availability of funds for investment, etc. This in turn will promote economic growth.”

Keywords: Stock market, All Share Index, Market Capitalisation