Impact Of Global Financial Crisis On Crude Oil Prices, Stock Prices And Inflation Rates In Nigeria

The simple hypothesis that we will be testing under this sector is that there is no significant difference between the average prices of stock before the crisis and during the crisis. The above table shows that it is only Intercontinental Bank that there do not exist a significant difference “before crisis prices and during crisis prices. In the other banks there exists a significant difference in the price of the stock.
PETROLEUM (MARKET) SECTOR

In this sector there was no significant difference between the stock prices of most of the company before the crisis and during the crisis. The only company that recorded significant difference is Mobil Oil.
The two  models  have  their  corresponding  P-value  to  be  0.000  and 0.045 respectively. This suggests that the inflation rate in Nigeria was increasing faster before the crisis than during the crisis.

CRUDE PRICES
The prices of crude between July 2007 and April 2009 were also regressed against time. The models generated are presented below in table 4:16.

A critical look at the above table 4:16 suggests that currently, the Global financial crisis of crude oil price is declining at a monthly rate of N1.303 Before the crisis impact in Nigeria, it was increasing at N4.027 per month. During the crisis, crude oil prices decreased by - N10.083 per month.
4.3.15. GRAPHICAL PRESENTATION
In this section, we are to present some line graphs which will enable us to see clearly the impact of the Global financial crisis on various sectors of the economy.

The figure above shows that between July 2007 and April 2008, most of the banks were experiencing monthly growth in stock price except for Zenith Bank that recorded depreciation at the beginning. Between May 2008 to January 2009, there was a tremendous decline in their stock prices to a point that had never been recorded for some time past. This shows clearly the impact of the crisis on the banking sector.

Figure 4.2 above is on the following indigenous and foreign companies which we group as “other sectors”. As can be seen, the impact was not much on this sector except for Julius Berger which recorded a sharp fall in share prices between May 2008 and April 2009.