This article examines the economic integration caused by globalization and effect of capital market in
Nigeria context. It establishes the type of relationship and level of significance of globalization and
capital market on the economic development. Globalization concept is framed as import plus export
divided by growth ratio. The capital market was determined in terms of proxy (by GDP) by price index.
The growth ratio assessed the level of development using econometric model. The results suggest that
sound economic reform and financial policies are necessary to achieve sustainable development in
Nigeria. However, there is need to increase exports, reduce imports and control exchange rate for
Nigeria to achieve sustainable economic development.