The most recent effects of economic meltdown in Nigeria come from the global financial recession that hit the world in 2007 to 2009. The crisis started in the banks in America which reverberated into all the financial markets around the world, one of which being Nigeria.
- Effects of economic meltdown: Losing investors
One of the main effects of the economic meltdown in Nigeria is the fact that they were forced to lose some of their foreign investors. Due to the global crisis, foreign markets were more concerned with their survival in the recession that they withdrew their investments from Nigeria. This resulted in the country losing money that they relied on from foreign inputs.
Nigeria is very dependent on their oil exports because it provides the country with a large monetary value. You could argue that the basis of Nigeria's wealth comes from the oil industry. During the recession, which continued from 2007 to 2009, Nigeria took a big hit when it came to oil exports. The demand for oil was lowered in this time which meant Nigeria was missing out on the regular money that boosted their economy. This in turn affected the exchange rate in the country.
- Decline in household income
As mentioned above, Nigeria in some way rely on the exports of oil from their country, however since the decline in oil exports, the household income has also been affected. Reports in 2008 identified that the income had lowered to 0.98 per cent due to the decline in oil exports.
- Problems in the stock market
The recession also caused the Nigerian stock market to be hit with a major downfall, despite the fact that it had been increasing and prospering over the last few years. Reports suggested that the figures in the stock exchange dropped dramatically.
