Journal of Emerging Trends in Economics and Management Sciences: Home

Abstract:
The global financial crisis, which later transformed to an economic crisis diffused into the Nigerian economy via trade with already affected foreign countries. The major export commodity in Nigeria is crude oil, which also accounts for the largest percentage of government revenue. This paper attempts a review of the Global Economic and Financial Crisis and its impact on the Oil and Gas sector of the Nigerian economy. It was discovered that the oil and gas sector is the major channel through which the crisis hit the Nigerian economy. There was a decline in oil prices during the period of the crisis but this cannot be particularly attributed to the crisis because oil prices were never stable even before the crisis. The crisis period was also characterized with reduced GDP. Nigerians also contributed to the impact of the crisis on their domestic economy as a result of their withdrawal of deposits from banks, thereby making less credit available for investment. The aftermath of the crisis was managed by prompt government actions, but this might not be the end of such crisis, so policies should be put in place to forestall future economic shocks. Some of the policy recommendations are: diversification of the economic base, focus shift to boosting agricultural output, institution of appropriate monetary, fiscal and exchange rate policy measures, targeted assistance to the poor, efficient use of the country?s resources and accountability

Keywords: global financial crisis, channel, economic base, policy measures.

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