Economic Crisis and Personal Financing in Nigeria
DOI:
https://doi.org/10.14738/abr.1011.13399Keywords:
Economic crisis, Inflation, Savings., Exchange rate, Unemployment, Spending, Cost of livingAbstract
The study was carried out to find out the relationship between economic crisis and personal financing among Nigerian workers. The research work made use of both primary and secondary data. Primary data were collected through questionnaires and secondary data sourced from the Central Bank Annual Reports and Bureau of Statistics. Multivariate analysis was applied to determine the relationship between Economic crisis (proxied by inflation, exchange rate, unemployment and cost of living) and personal financing (proxied by spending, tax, savings and investment). Results from the analysis showed a significant positive relationship between economic crisis and personal savings of Nigerian workers. The results showed further that both workers' personal spending and taxes have a positive relationship with the economic crisis in Nigeria, and their relationships are statistically significant at a 5% significance level. It means all the proxied economic crisis variables jointly affect Nigerian workers' personal savings, spending and personal taxes. However, economic crisis had no significant effect on the investment of Nigerian workers. Economic crisis does not influence how Nigerian workers invest their meagre income. Therefore, the economic drivers (governments) are advised to pay more attention to tackling the problems of the high exchange rate, inflation rate, and unemployment rate bedeviling the country to reduce the overall cost of living in Nigeria.
References
Aytaç, S. E. (2021). Effectiveness of Incumbent's Strategic Communication during Economic Crisis under Electoral Authoritarianism: Evidence from Turkey. American Political Science Review, 115(4), 1517-1523.
Fortis, S. P., Kriebardis, A. G., Georgatzakou, H. T., Lyrakos, G., Alexiou, P., Antoniou, C., ... & Valsami, S. (2022). Economic crisis in Greece: the invisible enemy of blood donation or not?. Transfusion and Apheresis Science, 103467.
Holleran, M. (2019). The 'lost generation'of the 2008 crisis: Generational memory and conflict in Spain. Journal of Sociology, 55(3), 463-477.
Briggs, W. (2022). Inflation, economic crisis and more money for'defence'. Green Left Weekly, (1349), 11.
Mindrican, I. M. (2020, April). The dynamics of inflation in the context of the economic crisis. In The 16th Economic International Conference.
Adeleye, N., Ogundipe, A. A., Ogundipe, O., Ogunrinola, I., & Adediran, O. (2019). Internal and external drivers of inflation in Nigeria. Banks Bank Syst, 14(4), 206-218.
Olayeni, O. R., Tiwari, A. K., & Wohar, M. E. (2020). Global economic activity, crude oil price and production, stock market behaviour and the Nigeria-US exchange rate. Energy Economics, 92, 104938.
Aloui, C., Hkiri, B., Hammoudeh, S., & Shahbaz, M. (2018). A multiple and partial wavelet analysis of the oil price, inflation, exchange rate, and economic growth nexus in Saudi Arabia. Emerging Markets Finance and Trade, 54(4), 935-956.
Rajković, M., Bjelić, P., Jaćimović, D., & Verbič, M. (2020). The impact of the exchange rate on the foreign trade imbalance during the economic crisis in the new EU member states and the Western Balkan countries. Economic research-Ekonomska istraživanja, 33(1), 182-203.
Liotti, G. (2020). Labour market flexibility, economic crisis and youth unemployment in Italy. Structural Change and Economic Dynamics, 54, 150-162.
Onifade, S. T., Ay, A., Asongu, S., & Bekun, F. V. (2020). Revisiting the trade and unemployment nexus: Empirical evidence from the Nigerian economy. Journal of Public Affairs, 20(3), e2053.
Uju, M., & Racheal, J. A. C. (2018). Impact of entrepreneurial skills in reducing youth unemployment in Nigeria. European Journal of Business, Economics and Accountancy, 6(3), 1-12.
CHANG, C. W. (2021). The Key Success Factors of the Domestic Banking Industry's Digital Transformation in Personal Financing Business.
Yahaya, Y., Dutse, U. A., & Bello, S. (2021). The Impact of Government Policies on the Growth and Development of SMEs interprises in Bauchi State Nigeria.
Zhanje, S., & Jeke, L. (2022). External Financing Sources and Economic Growth: A PARDL Approach to Selected SADC Countries. African Journal of Business and Economic Research, 17(2), 157-181.
Akinyede, O. M. and Ayodele, T. and Ojedele, M. I.( July 29, 2022)., The Nexus between Job Security and Personal Financing in Nigeria Available at SSRN: https://ssrn.com/abstract=
Pinkovetskaia, I. S., Lebedev, A., Slugina, O., ARBELAEZ CAMPILLO, D. F., & ROJAS BAHAMON, M. J. (2021). Informal personal financing of entrepreneurs: gender characteristics. Universal Journal of Accounting and Finance, 9(3), 442-449.
Hanspal, T. (2018). The effect of personal financing disruptions on entrepreneurship.
Mongale, I. P., Mashamaite, T., & Khoza, K. (2018). Household savings, financing and economic growth in South Africa. Business and Economic Horizons (BEH), 14(1232-2019-741), 105-116.
Lawal, S., & Abdulrahman, R. M. (2022). Effect of Entrepreneurial Financing on Women Entrepreneurship Performance in Zamfara State. IJBM-International Journal of Business Management, 5(05), 11-21.
Felipe, S. (2019). Economic Crisis and Saving Behavior. In Individual Behaviors and Technologies for Financial Innovations (pp. 47-67). Springer, Cham.
Agarwal, S., Qian, W., & Tan, R. (2020). Saving. In Household Finance (pp. 29-96). Palgrave Macmillan, Singapore.
Kim, C., & Park, S. (2022). When push comes to shove: The effect of economic crisis on the spending of government savings. International Journal of Public Administration, 45(6), 523-536.
Andersen, A. L., Hansen, E. T., Johannesen, N., & Sheridan, A. (2020). Pandemic, shutdown and consumer spending: Lessons from Scandinavian policy responses to COVID-19. arXiv preprint arXiv:2005.04630.
IMF (2010). II. Prospects for the U.S. Household Saving Rate1, IMF Staff Country Reports, 2010(248), A002. Retrieved Aug 22, 2022, from https://www.elibrary.imf.org/view/journals/002/2010/248/article-A002-en.xml
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2022 Oyinlola Morounfoluwa Akinyede, Thomas Duro Ayodele, Sunday Festus Lasupo
This work is licensed under a Creative Commons Attribution 4.0 International License.
