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THE EFFECTS OF GLOBAL FINANCE CRISIS ON THE FOREIGN DIRECT INVESTMENT IN NIGERIA BANKS

ABSTRACT

The effect of global financial crisis on foreign direct investment in Nigeria with Nigerian Banking sector as the a case study has been chosen to examine the significance of global credit crunch on the Nigerian banks. It is a very important issue because the world as a global village has made events in one part have direct or indirect impact on other part of the world especially when it concerns politic and economy. The general overview of the study introduced the topic and covers problems in the Nigerian financial system as a result of the financial meltdown, limitations of the study and area covered is also discussed. The literature review covers issues such as events in the global financial system and the Nigerian financial system as the financial meltdown affects it. The research methods used sources of data used were discussed. Data presentation and analysis including test of hypothesis were discussed. Finally, the lost chapter contains the summary of the work, conclusion and recommendations.

TABLE OF CONTENTS

PRELIMINARY PAGE

TITLE PAGE

APPROVAL PAGE

DEDICATION

ACKNOWLEDGEMENT

ABSTRACT

TABLE OF CONTENTS

LIST OF TABLES

LIST OF FIGURES

CHAPTER 1 – INTRODUCTION

CHAPTER 2 – LITERATURE REVIEW

CHAPTER 3 – RESEARCH DESIGN AND METHODOLOGY

CHAPTER 4 – PRESENTATION AND ANALYSIS

CHAPTER 5 – SUMMARY, CONCLUSION AND RECOMMENDATION

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

STATEMENT OF THE PROBLEM

OBJECTIVE OF THE STUDY

RESEARCH QUESTION

STATEMENT OF HYPOTHESIS

SIGNIFICANCE OF THE STUDY

SCOPE OF THE STUDY\

LIMITATION OF THE STUDY

DEFINITION OF TERM

CHAPTER TWO

LITERATURE REVIEW

OVERVIEW OF THE FINANCIAL SYSTEM GLOBALLY

OVERVIEW OF THE NIGERIA FINANCIAL SYSTEM

CAUSES OF THE GLOBAL FINANCIAL CRISIS

EFFECT OF THE MELTDOWN ON FOREIGN DIRECT INVESTMENT IN NIGERIAN BANKS.

WITHDRAWAL OF CREDIT LINES BY FOREIGN BANKS

EFFECTS ON BANKS AND ON LENDING FOR INFRASTRUCTURAL DEVELOPMENT.

EFFECTS ON BANKS SHARES IN THE CAPITAL MARKET.

THE VULNERABILITY OF BANKS ASSETS MANAGEMENT.

MEASURES TAKEN TO CURB THE EFFECTS OF THE MELTDOWN ON NIGERIA FINANCIAL SYSTEM.

THE AFTERMATH OF THE INTERVENTION

EMPIRICAL DATA ON FOREIGN DIRECT INVESTMENT BEFORE AND AFTER FINANCIAL MELTDOWN ON NIGERIAN FINANCIAL SYSTEM NFS.

CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

INTRODUCTION

RESEARCH DESIGN

SOURCES/METHOD OF DATA COLLECTION

POPULATION AND SAMPLE SIZE

SAMPLING TECHNIQUES

VALIDITY AND RELIABILITY OF INSTRUMENT.

METHOD OF DATA ANALYSIS/TECHNIQUES.

CHAPTER FOUR

PRESENTATION AND ANALYSIS OF DATA

INTRODUCTION

PRESENTATION OF DATA

ANALYSIS OF DATA

TEST OF HYPOTHESIS

INTERPRETATION OF RESULT

CHAPTER 5

SUMMARY, CONCLUSION AND RECOMMENDATION

INTRODUCTION

SUMMARY OF FINDINGS

CONCLUSION

RECOMMENDATION

REFERENCES

APPENDIX

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

The global financial crisis brewing for a while really started to show its effects in the middle of 2007 and into 2008 around the world stock markets have fallen, large financial institution have collapsed or been brought out, and government in even the wealthiest to bail out their financial systems.

A collapse of the united states sub-prim mortgage market and the reversal of the housing boom in other industrialized economist have had a ripple effect around the world.

According to Aluko (2008), the lending difficulties of the investment banking industry in the united states spectacularly lehman Brothers, Merrill Lynch, morgan Stanley and JP morgan chase and government backed mortagege giants fannie mae and Freddie mac has casued series of panies and financial instability globally even in th growing economy like Nigeria.

According to shah (2009) starting in well street, other followed quickly. With soaring profits, all wanted in even if it went beyond their area of expertise. Banks borrowed even more money to lend out so they would create more securitization some banks borrow from other banks and sell those loans on as securities, bad loans would be the problem of whosoever bought the securities.

Nigerian economy cannot be a lienated from what happens in the global economy since oil the major source of our revenue is affected globally with the short all in oil price to less the & 40 dollar per barrel, yusuf (2009).

Flakpa, Adeboya, Lgbikiowuba, Komolafe (2008) the withdrawal of funds by foreign investors from the Nigerian economy has contributed to the downward trends of stock market value of the various sector in the Nigerian economy. The Nigerian banking sector is not left out especially with some of the having foreign partners who contributes to the growth and development of the sector.

At the inception of the global financial methods, it was though that Nigeria will not get caught in the economic back lash, but now it is no longer how should we get insulted but how do we reduce the adverse effect of the financial meltdown.

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