Financial market provides institutional and instrumental framework that facilitates the mobilization of short to long term funds from the surplus units (savers and lenders) and allocating such mobilized funds to the deficit and real sector of the economy for productive purposes. The main objective of this study is to examine the effect of financial market instruments on the economic development in Nigeria. The specific objectives are to determine, examine, ascertain and assess the effects of stock market instruments, debt instruments, commercial instruments and treasury instruments respectively on Economic Development in Nigeria which is proxied by Per Capita Income. Econometric techniques including Augmented Dickey Fuller (ADF) and the Philip Perron Tests for Unit Roots and Ordinary Least Square (OLS) were applied on data sourced from the Stock Exchange Daily Official Listing (SEDOL) and fact book. The result of the study shows that stock market instruments, debt instruments, commercial instruments and treasury instruments have positive and significant effect on Per Capita Income. The study therefore concludes that financial market instruments have positive and significant effect on per capita income and standard of living of average Nigerian. This researcher recommends that the relevant regulatory agencies for the capital market should focus on enhancing the efficiency and transparency of the market in order to boost and strengthen investors’ confidence which had regrettably posed a major setback to the Nigerian business environment. Capital market growth inducement channels should be introduced to support the much needed robust and responsive financial system to achieve the desired effect on economic development. Regulators of the market and financial institutions should be actively involved in making systemic checks and appropriate policy innovations to ensure a capital market led economic development. Finally, government should give adequate publicity to the activities of the market, emphasizing it as a source of cheap long-term funds that would trigger industrial growth and economic development in Nigeria