ABSTRACT
This chapter explores possible institutional and regulatory reforms capable of improving the operations of the market. Two distinct segments of the market are therefore identifiable in Nigeria: Each segment of the capital market is given overt expression by the activities of individual/institutional users and suppliers of funds as they interact with financial institutions which intermediate in the investment process. The pressure of demand for long-term capital was therefore very apparent and must have influenced the government's introduction of some measures between 1960 and 1964 which had far-reaching implications for the development of the Nigerian capital market. A Development banks are specialised development finance institutions that cater for enterprises within specified sector(s) of the economy. All the four development banks in Nigeria are owned almost exclusively by the Federal Government and are generally better funded than the development finance companies.
