IMPACT OF GLOBAL FINANCIAL CRISIS ON CRUDE OIL PRICES, STOCK PRICES AND INFLATION RATES IN NIGERIA

IMPACT OF GLOBAL FINANCIAL CRISIS ON CRUDE OIL PRICES, STOCK PRICES AND INFLATION RATES IN NIGERIA

ABSTRACT

This study explains the effects of financial crisis on crude oil prices, stock prices and inflation rates in Nigeria and the global markets. Data were obtained from major players in the financial and oil sectors of the economy. They were analyzed using statistical packages. The results showed that crude oil and stock prices were both increasing before the crisis and decreased during and after the crisis. It was also observed that the inflation rate was increasing. It is suggested that, Nigeria should adopt a sustainable planning framework characterized by longer- term perspective plan on the annual budget and the Government should put policy intervention to track certain structural reforms to mitigate the impact on the real economy which will boost demand and reduce inflationary pressures.