This paper seeks to investigate the impact of bank recapitalization on capital market development in Nigeria, while the specific objectives of the study were, to: Examine the impact of Bank recapitalization on Total Market Capitalization (TMC) of the capital market development in Nigeria, determine the effect of bank recapitalization on All Share Index (ASI) of the  capital market development in Nigeria and access the influence of bank recapitalization on Stock Market Value (SMV) of the capital market development in Nigeria. The study adopted secondary data. Hypotheses were tested using Multiple Regression, Ordinary Least Square (OLS) modelling and the multiple linear regression statistical tools. The study reveals that Banks recapitalization has positive and non-significant impact on Total Market Capitalization (TMC) in Nigerian, Banks recapitalization has positive and non-significant impact on all share index (ASI) in Nigerian and Banks recapitalization has positive and non-significant impact on Stock market values (SMV) in Nigerian. The study recommended that managers of the Banks need to reduce the risk exposure of the banks that have survived the consolidation programme and also seek for more Capital through the Nigerian Market Capitalization (TMC).