Global Financial Crisis: A Challenge to Poverty Alleviation in Nigeria

Abstract

The current global financial crisis and the risk of global recession have heightened significantly the volatility of commodity prices, which is the mainstay of most developing countries like Nigeria. This study therefore, examined the influence of the Global Financial Crisis on Nigerian economy. The study adopted descriptive survey design. It was discovered that the financial crisis will cause fall in commodity prices, decline in export, lower portfolio and FDI inflow, fall in equity market, and decline in remittance from abroad etc. Developmental goals will be unachievable with less budgetary allocation to social services, thus pushing a greater number of people further into poverty. The paper recommends thus; government should empower multinational institutions, introduce rapid industrial revolution, maintain trade openness and finance system, donors should scale up aids to deliver on their commitment, and government should double effort towards human development goals, ensure adequate monetary and fiscal response, and develop strong political will to diversify the economy. These measures are required to shore up liquidity in the economy and thus keep it working the development of the economy: agriculture, tourism and infrastructure.

Keywords: Economic development, GlobalFinancial Crisis, Socio-economic development, Poverty alleviation, Nigeria