Global Financial Meltdown and its Effects on Nigeria Banking Sector.
ABSTRACT
Both developed and developing countries around the world have been worried about the effect of the global financial crisis on their local economics. One would have noticed that Nigeria is not exempted from the crisis.
This is the major reason why this project was embarked upon to ascertain the effects of this global financial crisis on our economy but with the banking sector as our case study. The problem caused by this global financial crisis on our economy and especially the banking sector cannot be over emphasised.
The problems typically include increase unemployment, decreased consumer and business spending, declining stock prices, depreciation of the naira against foreign currencies, sharp fall in the prices of shares and many more.
The purpose of this research is to evaluate the effect of this global financial crisis on the banking sector and the economy at large.
For the purpose of, this research, the method of the questionnaire was used for data analysis was percentage formula and any percentage that is more than fifty (50) percent is accepted while below is not.
The finding were that the crisis has really affected the Nigerian banks negatively and the Nigerian stock exchange as well, because of the trend continues, i am afraid most of them will go out of the business.
The recommendation was also given that the economy should be diversified and that the activities of these banks should be checked to prevent mismanagement.
TABLE OF CONTENTS
Title Page i
Approval page ii
Dedication iii
Acknowledgement iv
Table of contents v
Abstract ix
CHAPTER ONE
INTRODUCTION 1
1.1 Background of study 1
1.2 Statement of the problem 6
1.3 Purpose of the study 7
1.4 Significance of the study 8
1.5 Research Question 9
1.6 Scope of the study 9
1.7 Definition of terms 10
CHAPTER TWO LITERATURE REVIEW
2.1 The Origin of Global Meltdown 13
2.2 The coming economic meltdown in Nigeria 15
2.3 Causes of Economic Recession 22
2.4 Nigeria Banks and Capital Market 27
2.5 Nigeria: How Economic Meltdown is affecting 35
2.6 The Global Economic meltdown and Banking in Nigeria 39
2.7 Panic comments of the banking sector 48
2.8 Summary of literature review 51
CHAPTER THREE
3.0 Research Methodology 53
3.1 Brief outline of the study 53
3.2 Design of the study 53
3.3 Area of the study 54
3.4 Population of the study 54
3.5 Sample of the study 55
3.6 Instrument for data collection 55
3.7 Validation of instrument 56
3.8 Distributions and retrieval of the instrument 56
3.9 Method of data analysis 57
CHAPTER FOUR
PRESENTATION AND DATA ANALYSIS 58
Discussion of the findings 68
CHAPTER FIVE
5.1 Summary of findings 71
5.2 Conclusion 73
5.3 Recommendation 74
5.4 Suggestion for further research 75
5.5 Limitation of the study 76
References 77
Appendix 79
Questionnaire 80
INTRODUCTION
1.1. Background of the Study
Without being told every one whether educated or not would have understand by now that something is terribly wrong with the economy of the nations of the world, the center in the media of every nation both national and international.
The pertinent questions one may ask are, what is it all about? How did it come about? How are we affected as an individual and as a nation? How is one nation and the world responding to it? How can we find our way out of the problem caused by the crisis?
Economic meltdown is a situation where the economic activities of a nation is totally paralyzed and recessed.
According to Onuigbo (2007) economic meltdown could be called economic “go slow” just as traffic I am bring vehicle movement to a half, so does economic meltdown literally bring an economy to a stop. The resultant effects are many.
Broadly defined, a recession as a downturn in a nation economic activity. The consequences typically include increased unemployment, decreased consumer and business spending and declining stock prices.
Improvement in technology has brought the entire world into a “global-village” this is the reason for the fast spread of the current global economic meltdown across the nations of the world.
REFERENCES
Adiola, (2009): How Economic Meltdown is Affecting Banking Sector, June 8 2009. w.w.w.Google.com
Arthur, (2009): Causes of Economic Recession (Meltdown) in Nigeria. w.w.w.Google.com.
Dinis Tots, (2008): The Global Economic Meltdown and Banking in Nigeria, What Hope for Youth Employment. w.w.w.Google.com.
Daily Trust Editorial, (2009), State of Nigeria Banks Retrieved. w.w.w.Ask.com.
Ezeobelle, (2009), The Origin of Global Economic Meltdown, the Agape Magazine 4th Edition.
Nduwugwe, (2008), Nigerian Banks and Capital Market are under real financial crisis. w.w.w.com.
Ozodi, (2009); The Coming Economic Meltdown in Nigeria and its consequences. w.w.w.Google.com.
Sun News Paper, (2009): Panic Comments on the Banking Sector. w.w.wGoogle.com.
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