Global Financial Meltdown and its Effects on Nigeria Banking Sector

Global Financial Meltdown and its Effects on Nigeria Banking Sector.

Table of Contents

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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