ABSTRACT
The study examines the effect of global financial crisis on Nigerian economy. The
objectives set for the 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.
