IMPACT OF TERRORISM ON THE STOCK MARKET IN NIGERIA

DAN JUMBO, ROSE IBIWARI (2026) IMPACT OF TERRORISM ON THE STOCK MARKET IN NIGERIA. Other thesis, Godfrey Okoye University, Enugu.

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Abstract

This research analyzes the effects of terrorism on the performance of the Nigerian stock market for 31 years. With the help of a Quantitative ex-post-facto research design wherein the data was analyzed for the time period of 1994-2024, empirical testing of the relationship between terrorism and performance of Nigerian stock market was done by applying the Autoregressive Distributed lag bound tests on cointegration model with two different models. This means that Model 1 involves the All-share Index whereas Model 2 uses Market Capitalization to examine the Nigerian stock market. These models were tested together with other macroeconomic control variables like GDP, Interest Rate, Inflation and Exchange Rate. Analysis of the long-run results suggests that there is a negative but statistically insignificant effect of terrorism on both All share Index and market capitalization which means that the security shock does not have an impact on the long-run growth trend of the Nigeria Capital market even though it has caused distortions in the short run.Nevertheless, the findings of the Error Correction Model show that the speed of adjustment in the two cases is relatively high, indicating the presence of a mechanism in which the market self corrects itself after experiencing a shock in order to return to its equilibrium level. It is further found that GDP and Interest Rate have a major influence on the behavior of the market in terms of the Total Market Capitalization. In this respect, while changes in policy formulation by CBN have an influence on the total market capitalization of Nigeria stock market, the price plays no role. It is therefore suggested in this study that in order to protect investors in the stock market from geographic threats emanating from the securities and exchange commission, there is need to have listing of new securities in the Technology and Knowledge Based Industry Sectors. Moreover, policies need to be designed by CBN such that changes in the interest rate does not bring about contraction in the market in case of security threats

Item Type: Thesis (Other)
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Faculty of Management and Social Sciences
Depositing User: MICHAEL MADUBUKO
Date Deposited: 10 Aug 2026 12:13
Last Modified: 10 Aug 2026 12:13
URI: http://eprints.gouni.edu.ng/id/eprint/6232

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