THE EFFECT OF GLOBAL FINANCIAL CRISIS ON NIGERIAN ECONOMY

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THE EFFECT OF GLOBAL FINANCIAL CRISIS ON NIGERIAN ECONOMY

ABSTRACT

study are; to determine the causes of the global financial crisis, to ascertain the effects of global financial crisis, to suggest measures that would be taken to manage the impact of global financial crisis in Nigeria. Primary and secondary data were used, the population of the study was 1200 from which the sample size of 400 were determined using Taro Yamani’s formula. The research instruments used were questionnaire and oral interview. The reliability of the research instruments were tested using Pearson Product moment correlation coefficient; the result gave a reliability index of 0.98 indicating a high degree of consistency. Chi-square and correlation analysis were the statistical tools used. The findings from the study reveals that, decline in oil prices and revenue, increase government expenditure and decline in market indices are the challenges posed by financial crisis in Nigeria; consumption-based economy, poor savings, high credit culture and huge financial outflow are the causes of the global financial crisis in Nigeria; reduction in direct foreign investment and oversea development assistance are the effects of global financial crisis to Nigeria and finally, diversification of the economy, robust regulatory policies and professional supervision of financial crisis in Nigeria. Based on the findings, the researcher made the following recommendation: Nigeria should adopt tough policy measures as effective strategies towards a comprehensive strengthening of the financial service sector, government should ensure that policy recommendations are implemented in order to reposition the Nigerian economy against the impact of global financial crisis, government should create enabling environment to attract foreign investors in order to boost economic activities in the country. Finally, government needs to sincerely focus on developing/strengthening the economy and provide alternative sources of revenue on a sustained basis.

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