EFFECT OF GLOBAL FINANCIAL CRISIS ON DVELOPING ECONOMY IN NIGERIA

ABSTRACT

This research work on global financial crisis on Developing Economy in Nigeria from 2009- 2017. Secondary data was obtained from the World Bank, the Central Bank of Nigeria and the IMF World Economic. The economic indicators examined in this research are: unemployment rate, inflation rate, interest rate, non-performing loans, foreign direct investment, foreign exchange reserve, real GDP growth rate, and exchange rate. The regression analysis was conducted to examine the effect of unemployment caused by the global financial crisis on the country’s real GDP growth rate. Descriptive statistics including the mean, median and standard deviation was also used to analyze the data. Trend analysis was further used to analyze the trend of these indicators over the years. The findings of this research indicated that the inflation rate and banks’ non-performing loans have increased during the global financial crises, however they both moved back to their original levels during the post-crises period. On the other hand the negative effect of the global financial crises on unemployment, foreign direct investment and economic growth remained unchanged even after the post-crises period. Also the dependence of Nigerian economy on its petroleum exports makes its economic growth highly sensitive to the petroleum prices. As the petroleum prices fell during the post-crises period the economic growth of Nigeria was negatively affected.

LIST OF TABLES

4.2.1 Nigerian Real GDP Growth Rates     -        -        -        -        28

4.2.2 Non-Performing Loans to Total Loans       -           -           -           -           30

4.2.3: Nigerian Foreign Direct Investment -        -        -        -        34

4.2.4: Nigerian Inflation Rates          -        -        -        -        -        -        36

4.2.5: Nigerian Real Interest Rate     -        -        -        -        -        38

4.2.6: Nigerian Exchange Rate          -        -        -        -        -        -        40

4.2.7: Oil Prices (U.S dollars)        -           -           -           -           -           -           42

4.2.8: Nigerian Foreign Exchange Reserves         -        -        -        -        44

4.2.9: Nigerian Unemployment Rate          -        -        -        -        -        46

4.2.10: Regression Results      -        -        -        -        -        -        48
TABLE OF CONTENTS

Title Page              -        -        -        -        -        -        -        -        i

Approval Page     -        -        -        -        -        -        -        -        ii

Dedication            -        -        -        -        -        -        -        -        iii

Acknowledgement-        -        -        -        -        -        -        -        iv

Abstract                -        -        -        -        -        -        -        -        v

List of Tables       -        -        -        -        -        -        -        -        vi

Table of Contents -        -        -        -        -        -        -        -        vii

CHAPTER ONE

GENERAL INTRODUCTION

1.1     Background of the Study                  -        -        -        -        -        1

1.2     Statement of the Problem                  -        -        -        -        -        3

1.3     Research Questions       -        -        -        -        -        -        3

1.4     Objectives of the Study           -        -        -        -        -        4

1.5     Significance of the Study                   -        -        -        -        -        4

1.6     Scope OF the Study       -        -        -        -        -        -        4

1.7     Organization of the Study       -        -        -        -        -        4

CHAPTER TWO

LITERATURE REVIEW

2.1     Introduction                   -        -        -        -        -        -        6

2.2     Conceptual Definitions            -        -        -        -        -        6

2.2.1  Concept of global of financial crisis  -        -        -        -        6

2.2.2  Reasons for financial crisis      -        -        -        -        -        8

2.2.3  Consequences of Global financial crisis on Nigerian Economy 11

2.2.4  Impact of the current financial crisis on developing countries 12

2.3     History of effect of global financial crisis   -        -        -        14

2.4     Similar studies conducted in Nigeria -        -        -        -        15

2.5     Similar studies conducted in other countries        -        -        -        19

2.6     Hypothesis development         -        -        -        -        -        -        21

2.7     Conclusion -        -        -        -        -        -        -        -        21

CHAPTER THREE

RESEARCH METHODOLOGY

3.1     Introduction                   -        -        -        -        -        -        -        23

3.2     Research Design   -       -        -        -        -        -        -        23

3.3     Population of the Study          -        -        -        -        -        -        23

3.4     Sample and Sampling Techniques -  -        -        -        -        24

3.5     Sources of data    -        -        -        -        -        -        -        24

3.6     Instrument of Data Collection           -        -        -        -        -        25

3.6     Method of data analysis          -        -        -        -        -        -        25

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1     Introduction                   -        -        -        -        -        -        -        28

4.2     Data Presentation and Analysis        -        -        -        -        -        28

4.3     Summary of Findings    -       -        -        -        -        -        49

4.4     Conclusion           -        -        -        -        -        -        -        50

CHAPTER FIVE

CONCLUSION

5.1     Introduction         -        -        -        -        -        -        -        51

5.2     Summary              -        -        -        -        -        -        -        51

5.3     Conclusion                     -        -        -        -        -        -        51

5.4     Recommendations                   -        -        -        -        -        -        53

References -        -        -        -        -        -        -        -        56

Appendices -        -        -        -        -        -        -        -        60