Our Archives

Call 08068929770 or 08122972656 for any enquiries.

Project Topic:

GLOBAL ECONOMIC MELTDOWN AND THE NIGERIAN CAPITAL MARKET

Project Information:

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 64 ::   Attributes: Data Analysis, abstract, table of content ::   1,396 people found this useful

Project Body:

1.1     INTRODUCTION

The global financial crisis began in the United States of America and the United Kingdom when the global credit market came to a standstill in July 2007 (Avgouleas, 2008). The crisis, brewing for a while, really started to show its effects in the middle of 2008. Around the world stock markets have fallen, large financial institutions have collapsed or been bought out, and governments in even the wealthiest nations have had to come up with rescue packages to bail out their financial systems.

The original root of the current financial mess is in the US- the world’s largest Industrial-Military complex. With an estimated GDP of $14 trillion, the US contributes about 25% of world output. If, as is being forecast, the US economy contracts by just 1%, this will imply a direct output loss of approximately $140 billion- equivalent to the GDP of Pakistan, the 47th largest economy in the world! And the crises are not restricted to the US. Financial markets have tumbled and slumped the world over: from London to Tokyo, Seoul to Sydney, Sao Paulo to Moscow, Bombay to Frankfurt etc. No economy-whether developed, emerging or developing is, so far, insulated from what Greenspan refers to as ‘once-in-a-century credit tsunami’.

The initial response of the policy makers in Nigeria was meek. Either they did not understand the crises or underestimated its magnitude. In general, they thought of the crisis as only a ‘storm in a tea cup’, an aberration, a ‘hiccup’. They insisted that the ‘fundamentals of the financial system look impressively strong’ even when the capital market has been bleeding uncontrollably. The Minister of Planning stated, rather insensitively, ‘there is no problem in the Nation’s capital market. What we have presently is just corrections and adjustments….shareholders are getting dividends and bonuses and they are happy…’ this was at a time when market capitalization had dropped from N12 trillion to less than N9 trillion. When they finally accepted there was a crisis, they promised to take some unspecified ‘drastic and unusual action’ to stem the global financial crises from causing havoc in the Nigerian financial system (Abubakar, M., 2008).

That initial response was, to put it mildly, naïve. The country’s dependence on the export sector is very significant: 99% of FX and 85% of local revenues are directly derived from activities related to export of a single commodity, which is at the center of the current

financial crises, oil. It is estimated that 58.4% of Nigeria’s exports are US bound and up to 25% to the Euro zone. 67% of our non-oil exports go to Western Europe, 20% to Asia while ECOWAS accounted for only 11% in 2007. The stock of our FX reserves is kept in European capitals where financial markets have tumbled and banks distressed. How can anyone think we are insulated? International financial crises which affect trade and investment flows are bound to impact on the domestic economy.

The recent global financial crisis had a deleterious impact on the world economy, especially on the financial system in most countries, whether developed, emerging market or developing countries. In the wake of the devastating effects of the crisis, governments as well as central banks all around the world adopted several measures including some unconventional ones to deal with the crisis. The effects of the financial crisis still lingers too date as countries continue to struggle to bring back their financial institutions and markets to a stage where public confidence is fully restored and financial institutions, especially banks resume their intermediation role through resumption of lending activities (Sanusi Lamido Sanusi, 2010).

 

Like most developing countries, Nigeria felt the effects of the financial crisis largely through trade and capital flows because of the openness of the economy and the near total reliance on crude oil exports for government revenue and foreign exchange earnings. The impact of the crisis through the financial system was not as direct or devastating as those of developed and emerging market economies where there was a near obliteration of the entire financial system because of the limited integration with the global financial markets. However, when the impact of the crisis permeated Nigeria’s financial system, the soundness and stability of the system was seriously threatened prompting a decisive intervention of the Central Bank of Nigeria (CBN) to mitigate the emerging crisis and restore public confidence (Sanusi Lamido Sanusi, 2010).

 

1.2     STATEMENT OF THE RESEARCH PROBLEM

 

The global economic recession stares everyone in the face; and no responsible nation or leader will run from the reality of the crisis by telling its nationals that all is well. This consideration necessitated these questions:

 

i.            What is the impact of global economic meltdown on the Nigerian economy?

 

ii.           Did the crash in the price of crude oil affect the Nigerian economy?

 

iii.         Did the divestment of foreign investors affect the Nigerian economy?   

 

1.3     OBJECTIVES OF THE STUDY

 

i.            To ascertain the effect of global economic meltdown on the Nigerian economy.

 

ii.           To find out if the crash in the price of crude oil affected the Nigerian economy.

 

iii.         To examine the impact of divestment of foreign investors on the Nigerian economy.

 

1.4     SIGNIFICANCE OF THE STUDY

 

The problem of global economic meltdown which has visited every nation is a serious one that cannot be over looked. This problem will remain until the cause, the nature and how to mitigate the residual affect has been completely taking care of.

 

This research work is based on the impact of global economic meltdown on the Nigerian economy and attempt to shed more light in this area will definitely constitute an important addition to already existing researches in this area. The study as a result, will try within the contest of the Nigerian economy to reveal the causes and the effect of the global economic meltdown on the Nigerian economy. The results obtained from the study will contribute to the formulation and implementation of more effective policies that will help in salvaging the dawned Nigerian economy. 

 

1.5     STATEMENT OF RESEARCH HYPOTHESIS 

 

i.            Ho:  Global economic meltdown has no significant impact on the Nigerian economy.

 

       H1:  Global economic meltdown has significant impact on the Nigerian economy.

 

ii.           Ho:  The crash in the price of crude oil has negatively affected the Nigerian economy.

 

       H1:  The crash in the price of crude oil has not affected the Nigerian economy. 

 

iii.         Ho:  Divestment of foreign investors has no effect on the Nigerian economy.

 

       H1:  Divestment of foreign investors has a strong effect on the Nigerian economy.

 

1.6     SCOPE OF THE STUDY

 

This study is within the context of the Nigeria economy. It will deal on the past and current effect of the global economic meltdown on the Nigeria economy.

 


Get The Complete Project »

Project Department:

MORE BANKING AND FINANCE FREE UNDERGRADUATE PROJECT TOPICS AND RESEARCH MATERIALS

Instantly Share this Project On Social Media:

CLOSELY RELATED BANKING AND FINANCE FREE UNDERGRADUATE PROJECT TOPICS AND RESEARCH MATERIALS

A CRITICAL ANALYSIS ON THE USE OF FINANCIAL STATEMENTS IN ASSESSING THE PERFORMANCE OF AN ORGANIZATION (A CASE STUDY OF FIRST BANK NIGERIA)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 72 ::   Attributes: Questionnaire, Data Analysis  ::   3766 engagements

ABSTRACT This project work is carried out to examine the contribution of micro finance banks to the development of Small and medium scale enterprises in Nigeria. The Brass micro finance bank is used a...Continue reading »

A STUDY ON THE ACCEPTANCE AND ADOPTION OF THE CBN CASHLES POLICY IN PORT HARCOURT, NIGERIA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 76 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   2787 engagements

CHAPTER ONE INTRODUCTION 1.1. BACKGROUND TO THE STUDY One of the prerequisites for the development of national economy according to Ajayi et al, 2006 is by encouraging a payment system that is secu...Continue reading »

A STUDY ON THE IMPACT OF BUDGETARY CONTROLS ON THE PERFORMANCE OF AN ORGANIZATION (A CASE STUDY OF FIDELITY BANK PLC)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 80 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   3006 engagements

CHAPTER ONE INTRODUCTION 1.1. BACKGROUND OF THE STUDY AND PROFILE OF THE ORGANIZATION Following the uncertainties prevailing in the Nigerian business environment today, managers and stakeholders mu...Continue reading »

ANALYZING PERFORMANCE APPRAISAL TECHNIQUES IN UNION BANK NIG PLC

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 67 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   7302 engagements

CHAPTER ONE INTRODUCTION 1.1. BACKGROUND OF THE STUDY In any evaluation of the condition necessary for the growth and survival of an organization, the role of performance appraisal is a strategic f...Continue reading »

AUDIT INDEPENDENCE: ENHANCING ACCOUNTABILITY AND TRANSPARENCY IN CORPORATE ORGANIZATIONS

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 71 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   2424 engagements

CHAPTER ONE INTRODUCTION 1.1. Background of the study The subject of transparency and accountability in modern day corporate organizations has continued to receive attention as never before. It has b...Continue reading »

CREDIT MANAGEMENT AND ISSUES OF BAD DEBTS IN COMMERCIAL BANKS IN NIGERIA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 68 ::   Attributes: Questionnaire, Data Analysis,Abstract

The article on this topic (credit management and issues of bad debts in commercial banks in Nigeria) is an extract from literature review of the project material. The complete project work would be ma...Continue reading »

What are you looking for today?

TESTIMONIALS:

  • 1. Mohammed A.B from Veterinary Laboratory, Zanzibar ,Tanzania said "You are doing good job to assists in research. God bless you.".
    Rating: Very Good
  • 2. Grace Madu from IMT enugu said "Thank you so much; i will tell my friends about you guys!!! Please give them a good job just like mine!!! God bless you!!!".
    Rating: Excellent
  • 3. Favour Adeoti from Unimaid said "For the good deeds and help to students like me, may God almighty continue to bless u and empower you to do more. Thank u very much...".
    Rating: Excellent
  • 4. Saddiq Abubakar Shuaibu from ESAE BENIN UNIVERSITY said "I check your site because I want you to help do this project thank you".
    Rating: Excellent
  • 5. Temitope Olumide from UAM makurdi said "I can not believe i could trust online platforms but you prove to me that there are still some good people out there. Thank you Mr Donald".
    Rating: Excellent
  • 6. Topeola Atinuke from the bells said "hmmmm, not sure yet about all dis comment still working on dem yet....tank u".
    Rating: Average

Paper Information

Format:ms word
Chapter:1-5
Pages:64
Attribute:Data Analysis, abstract, table of content
Price:₦3,000
Get The Complete Project »

Best Selling Projects

Our Archives