AN EMPIRICAL STUDY ON THE DYNAMIC RELATIONSHIP BETWEEN CRUDE OIL PRICES AND NIGERA STOCK MARKET

In this paper, we have examined the crude oil price on the performance of Nigerian stock exchange and exchange rate act as the plausible countercyclical tool .we have applied the different models and collected the results that crude oil prices have direct impact on the stock exchange of Nigeria. The Nigeria stock exchange is regulated by the Securities and Exchange Commission .Nigeria stock exchange has the automated trading system. The basic facility of Nigeria trading system is (ATS), it is helpful to remote trading system. Consequently, most of the investors do trade with the method of ATS. This study is also proving that Nigeria stock exchange has influenced on the performance of the economy, Impact of oil crisis on the Nigeria stock exchange, Impact of crude oil crisis on the development of country, Effect of exchange rate policy on the performance of Nigeria stock exchange.


INTRODUCTION
Robust of the studies have been done about the fluctuations effect of crude oil on the stock exchange of Malaysia. Financial market is known as the crucial way to analysis the impact of decrease crude oil prices on the stock exchange stock exchange of Malaysia. According to Kumar (2014) oil crisis has impact worst on the performance of stock exchange. In this paper, discussed the two main dimestions1) impact of oil crisis on the importing country 2) impact of oil prices on the exporting countries. Soytas, 2006 have analyzed the impact of oil crisis on the Nigeria stock exchange, for this purpose they have utilized the VAR model. It is very effective model to analysis the impact of crude oil prices on the stock exchange of all the stock exchange. This model is also affected to analysis the response of dependent variable on the logged values of the independent variables.

HISTORY OF NIGERIA STOCK EXCHANGE
First time the Nigeria stock exchange was established in 1960 with the name of Lagos stock exchange. After the sometimes, its name was changes now it is known as the Nigerian stock exchange. In 2016, there are listed near about 181 listed companies with the market capitalization of about N10.17 trillion .Nigeria stock exchanges is known as the third largest stock exchange of Africa. The Nigeria stock exchange is regulated by the Securities and Exchange Commission .Nigeria stock exchange has the automated trading system. The basic facility of Nigeria trading system is (ATS),it is helpful to remote trading system. Consequently, most of the investors do trade with the method of ATS .Every business day the trade has started from 9.30 am and close to 2.30 PM.

OBJECTIVE OF THE STUDY
1) Impact of oil crisis on the Nigeria stock exchange. 2) Impact of crude oil crisis on the development of country.
3) Effect of exchange rate policy on the performance of Nigeria stock exchange.

PROBLEM STATEMENT
Impact of oil prices on the stock exchange of Nigeria.

IMPACT OF INTERNATIONAL CRUDE OIL ON THE DIFFERENT STOCK MARKET
1) High profitability can be created with the lower cost of energy.
2) There is inverse relationship between crude oil and exchange rate. 3) In the different domestic market the demand of lower energy is very high.

HYPOTHESIS STUDY
HO: There is relationship between oil prices and stock exchange of Nigeria HA: There is no relationship between oil prices and stock prices of Nigeria.  Engle, R. F, Viewed that impact of crude oil by the various sectors of stock exchange of USA. For this purpose, they had taken the data from 2001 to 2011 and applied the VAR model and proved that there is no positive relationship between oil prices and stock exchange of USA [10].

GAPS IN LITERATURE
1) In the last studies, nobody had discussed about the alternative of oil.
2) In the past studies nobody has explained impact of crude oil on the economy condition.
3) From the last studies nobody has major reason of increasing inflation rate day by day.

METHODOLOGY
In this paper, we have adopted the econometric data, it is based on the empirical facts .we have derived the hypotheses from here. We have showed the associations between dependent and independent variables.

Model Specification:
The following models of the capital market indicators were specified for this study: i) Stock Price model, represented as SP = f(OP, GDP, EXR,INV,MPR); and its regression model is stated as ; SP = a0 + a1OP + a2 GDP + a3EXR+ a4INV + a5MPR + µ1 Where, SP = Stock Price (representing the stock market performance)