The Impact of a Global Crisis on the Economic Sustainability of Nigeria: The Case of Covid-19 Pandemic

Abstract

This study assessed the impact of a global crisis on the economic sustainability of Nigeria. The present study explored the effect of the exchange rate, oil price, and investment rate on the financial sustainability of Nigeria. It adopted the qualitative and quantitative research design in its approach. The study gathered quarterly time series data spanning from 2016 Q1 to 2020 Q2. Econometrics estimations, including ARDLcointegration analysis, parsimonious error correction model, and other post estimation tests, were used to analyze the study data. Findings from the study revealed that in the long run, exchange rate, oil price, and investment rate exert a positive impact on economic sustainability, and in the short run, exchange rate and oil price exert s negative impact on financial sustainability, while investment rate impact positively on economic sustainability. Following these findings, the study suggested that the Central Bank of Nigeria should maintain the stability of the exchange rate. The Government of Nigeria should switch the economy from a single or mono-economy, and the Central Bank of Nigeria should further improve financial inclusion.