Investment and Banking ISSN 1450-288X Issue 7 (2009) © EuroJournals Publishing, Inc. 2009 http://www.eurojournals.com/JMIB.htm The Impact of Macroeconomic Instability on the Banking Sector Lending Behaviour in Nigeria Somoye, Russell Olukayode Christopher Associate Professor, Department of Banking and Finance Olabisi Onabanjo University, Ago-Iwoye P.O Box 1140 Ijebu Ode , Nigeria E-mail: olukayodesomoye@hotmail.com Tel: + 234-8033335688 Ilo, Bamidele M Department of Banking and Finance, Olabisi Onabanjo
time of writing, oil prices have begun to stabilize at levels ranging in the mid US$ 40 per barrel and also there was withdrawal of investment from foreign investors or huge capital outflow In Nigeria — Africa 's largest exporter of crude oil which amounts to 80 percent of its earnings, the impact of the credit crunch has been enormous, the 3.1-trillion-naira-budget is in deficit. illiquidity and Credit crunch leading to confidence crisis, weak consumer demand, Sub-prime crisis of 2007 and breakdown
DROP IN PRICE OF CRUDE OIL: IMPLICATION ON THE NIGERIAN ECONOMY PAPER DELIVERED TO BOARD OF DIRECTORS OF GUINNESS NIGERIA PLC Executive Summary The volatility in the prices of crude oil in the international oil market which was triggered by factors within the global economy has impacted the Nigeria economy to some degree with dire consequences for the implementation of the 2012 budget. Some of the factors which triggered the fall in oil prices include a massive
Domestic and External Factors on African Macroeconomic Formulation Introduction Growth, productivity and employment are the most common economic variables to reduce extreme poverty and break poverty trap. Report from World Bank in 2007 revealed that one percent in GDP growth results to 1.3% poverty decline in low-income countries. Moreover, development in the productive capacity leads to reduction in sustainable poverty. With improvement in the economic growth, many people have been removed
Oil Price Shock on Exchange Rate, Interest Rate, and Stock Exchange Performance: Crude oil and its byproducts since its discovery is one of the most basic input to the world particularly for energy. It is important to human existence and also, finite in supply. It has several other uses which include: hydrocarbons for plastic, pharmaceutical, and other basic day to day items. More so, most of our equipments depends on oil and its product to enable them work. Like every other product that is traded
assets, which ultimately would enable the expansion of the US current account deficit (Setser, 2007). The real exchange rate, which is a measure of the price of foreign goods, relative to domestic goods across different countries, is a critical factor in determining the capital account, along with the interest rate. It is
then, the economy became dependant on crude oil revenues to finance government budget and provided the required foreign exchange to pay imports bill. During the period 2000 – 2011, Sudan witnessed a higher growth rate of its Gross Domestic Product, driven mainly by the oil sector (World Bank, 2009). This situation has exposed the economy to the negative effects of fluctuations in oil prices in the global markets. It is worth noting that during the period under investigation Sudan was a net oil exporter
This is approximately US 8.2 per month or US 27 cents per day. Doug Addison (unpublished) further explained that the Nigeria economy is not merely volatile; it is one of the most volatile economies in the world (see figure 1 below). There is evidence that this volatility is adversely affecting the real growth rate of Nigeria’s gross domestic product (GDP) by inhibiting investment and reducing the productivity of investment, both public and private. Economic theory
export sector in Nigeria constitutes products of agriculture, industry and services that are exported by Nigeria (Ojowu, 1989). Agriculture is the primary non-oil product sector, which provides food, and fiber for the economy, while industry, as the modern sector, produces manufactured goods. The non-oil export sector of the Nigerian
Institutional Reforms □ Major agricultural policies in Nigeria from 1960-2005 □ Macro-economic variables affecting economic growth □ Government expenditure □ Investment □ Foreign investment □ The new Nigerian Agricultural Policy 2.0 The role of agriculture in an economy It is important to first define the term-Agriculture before talking about the role of agriculture in the economy. Oxford