TESTING THE RESILIENCE OF NIGERIAN BUSINESSES DURING CRISES
- Afolabi E. Olowookere; Idris Tijani
- ( paper pages. 287 - 310 )
Abstract
Occurrences such as the global financial crisis
and the COVID-19 pandemic affect the performance of economies, and there is
evidence that their impacts vary across businesses. During the recent COVID-19
pandemic, Nigerian businesses and the economy were negatively affected; similarly,
previous crises have had varying impacts on domestic businesses. While some of
the businesses have collapsed, others have struggled to keep their operations
going. Thus, this study examined the extent to which businesses have been
resilient during major crises in Nigeria and established sectoral variations in
business resilience. Specifically, the study analysed the impact of three major
crises on Nigerian businesses, namely the global financial crisis of 2007-2009,
global oil price shocks (2016-2017), and the COVID-19 pandemic (2020). The
study documented the weak resilience of Nigerian businesses to each of these
crises by using panel regression methods on a sample of over 150 companies
listed on the Nigerian Exchange (NGX) between 2000 and 2021. Specifically, it
demonstrated that Nigerian businesses showed
very little resilience to the global oil price crisis. It also found
that the sectors in which businesses operated affected their resilience
capacity, as those in the agriculture sector were relatively more resilient
than those in other sectors, followed by those in trade and other services.
Conversely, businesses in the banking and insurance sectors, as well as those
in the industrial sector, were the least resilient to crises. Based on these
findings, the study offered some policy recommendations to improve business
resilience in Nigeria, and these can also be applied in similar jurisdictions.
Citation
Afolabi E. Olowookere; Idris Tijani.
2023.
"TESTING THE RESILIENCE OF NIGERIAN BUSINESSES DURING CRISES"
The Nigerian Journal of Economic and Social Studies,
65 (2): 287 - 310.
JEL Classification
G01, H12
