This paper, examines the effect of the Nigerian capital market operations on the local investmentsin Nigeria. The main objectives highlighted, is to empirically analyze the effect of the Nigeriancapital market operations on local investment. The relevance of the capital in the encouragement oflocal investment and economic development were highlighted. The paper concludes withrecommendation to stem up investors confidence and activities in the capital market so that it couldcontribute significantly to the growth of local investment in Nigeria.