This study examined the capital market as veritable source of economic development in Nigeria which covered the period of 20 years only (1992-2011). The data were collected through primary and secondary sources but emphasis was laid majorly on secondary data collections. The analysis of data was done through statistical package (E-view) and ordinary least square method (multiple regression) was used. The GDP serves as dependent variable while MCAP, VOT, TLS and TNI served as independent variables. The finding reveals that MCAP, VOT, TLS and TNI have influencing on GDP. In this case the market capitalization, value of transaction and total listed equity and government stock will increase or boost Nigeria economic growth and development while total new issues will decrease Nigeria economic growth i.e. the result from statistical package (E-view) shows that MCAP, VOT and TLS have positive effects on Nigeria economic growth while TNI has negative impact on economic growth. Therefore, the study concluded that capital market has impacted on Nigeria economic growth and development which made it to serve as a veritable source for Nigeria economic growth and development which has the capacity to provide enabling environment for both local and foreign investors to transform Nigeria economy for the betterment of her citizens. For Nigeria to experience economic growth and development through the aid of capital market the study proffers the following recommendations; the operations of the capital market must be regulated by the regulatory authority so transparency in the system can be ensured in order to increase the interest of general public in the system. The Nigerians must be sensitized on the activities of capital market so that they can have interest in market as the one of most saver ways whereby saving can be mobilized and thereby encourage investment. Improvement in the declining market capitalization by encouraging more foreign investors to participate in the market, maintain state of the art technology like automated trading and settlement practice, electronic fund clearance and eliminate physical transfer of shares etc.