Corona Virus (COVID-19) Pandemic and Nigerian Financial Market

7 Pages Posted: 24 Jul 2020 Last revised: 8 Sep 2020

See all articles by Thomas Ayodele

Thomas Ayodele

Redeemer's University

Oyınlola M. Akinyede

Department of Finance, Redeemers University

Mofoluwaso Iyabode

Redeemer's University

Date Written: June 10, 2020

Abstract

The study empirically investigates the effect of the Coronavirus outbreak on the performance and effectiveness of the Nigerian money market, capital market, and foreign exchange market. TO achieve this objective, the study made use of time-series data for 120 working days after the first COVID-19 confirmed case in Nigeria and used both exploratory and multiple regression analysis to evaluate the effect of COVID-19 on the Nigerian financial market. Open buy back rate (OBRR), All Share Index Volume (ASIV) and Parallel Foreign Exchange Rate (PFXR) were used as variables for money market, capital market and foreign exchange market respectively. Results from the analysis show that COVID-19 cases is inversely related to the interbank money market rate and the All Share Index Volume of the capital market, but directly related to the foreign exchange rate. The study concludes that COVID-19 pandemic significantly affect the Nigerian financial market. Therefore, it was recommended that the Federal Government should take preventive steps against financial challenges resulting from health risk. This can be done by taking proactive action against diseases that may affect the country’s financial system in order to ensure stability in the performance of our financial market.

Keywords: COVID, Financial Market, Money Market, Capital Market, Foreign Exchange Market

JEL Classification: G1, D01, I1

Suggested Citation

Ayodele, Thomas and Akinyede, Oyınlola M. and Ojedele, Mofoluwaso Iyabode, Corona Virus (COVID-19) Pandemic and Nigerian Financial Market (June 10, 2020). Available at SSRN: https://ssrn.com/abstract=3656284 or http://dx.doi.org/10.2139/ssrn.3656284

Thomas Ayodele

Redeemer's University ( email )

Km 46, Lagos - Ibadan Expressway
Ogun State
Redemption City, Ogun State 23401
Nigeria

Oyınlola M. Akinyede (Contact Author)

Department of Finance, Redeemers University ( email )

Ede, Osun State
Nigeria
+2347069328922 (Phone)

Mofoluwaso Iyabode Ojedele

Redeemer's University ( email )

Km 46, Lagos - Ibadan Expressway
Ogun State
Redemption City, Ogun State 23401
Nigeria

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
386
Abstract Views
1,673
rank
96,167
PlumX Metrics