The Effect of Global Financial Crisis on Nigeria Economy

Abstract

This research work studied the effect of global financial crisis on Nigeria economy in Nigeria. The financial crisis ravaging the global economy is naturally a serious cause for concern to policy makers. Secondary data were used in this study, the data were collected from CBN statistical bulletin also data were also gathered from journals and textbook that are related to the research topic. The overall significance of the regression is tested using Fisher's statistics. In this study the calculated F* value of 47.375 is significant at 5%. The result however show that linear relationship exist between the dependent and the independent variables of the model. The evidence established that the independent explanatory variables have individual and combine impact on the market capitalization in Nigeria. There is significant relationship between global financial crisis and capital market in Nigeria. Some of the recommendations made in this study are that. There is an urgent need for the total overhaul of regulations and regulatory framework, in order to enhance both the on-site and off-site examination and supervision of the banks. There is the need for increased and enhanced provisions for consumer protection. Nigerian economy is a mono-economy; any crash on the price of oil internationally will cripple our economy. So it is a matter of urgency for the Nigerian economy to divest into agriculture, manufacturing, information technology etc. Political stability is an important factor that encourages investment in an economy. So our nascent democracy should be nurtured.