The Trends and Implications of the Global Financial Crisis on the Nigerian Economy

Objective – Crises have been a feature of the financial landscape for decades. The current global financial crisis is triggered by events in the United States, and rapidly engulfing the entire globe. Nigerian financial market being one of the emerging global markets have over the last four years witnessed some significant level of progress and stability in the form of recapitalization and consolidation of its financial institutions. These reforms though commendable, yet could not shield the banks and the entire economy from the global financial crisis. This study identifies the trends and implications of the global financial crisis on the Nigerian economy. Methodology/Technique – Descriptive analysis through secondary sources of data employed. A stratified sampling method adopted to select between the two strata that are the strongest and the weakest in terms of capital based. Four organizations were chosen from each stratum making eight banks and the Nigerian Stock Exchange (NSE) as the sample size of the study. Findings – This study identifies the trends and implications of the global financial crisis on the Nigerian economy. It was observed that Nigerian banks are open to global practices and business relationships with foreign banks that are badly affected by the crisis. While investors lose confidence in the Nigerian markets as stocks and oil fall drastically almost daily. This has almost resulted in drastic cut in the foreign capital inflow for the country. Novelty – Based on the above findings the study recommends that Nigerian government should diversify the economy by improving the state of infrastructure, intensify the war against corruption, propose bailout measures for privatized companies and ensure fair and sincere democracy. Type of Paper: Conceptual.