IMPLICATIONS OF GLOBAL CRISIS ON NIGERIAN POLITICAL ECONOMY

This study examined the implications of global crisis on Nigerian political economy, with particular focus on macroeconomic stability, investment patterns, employment levels, poverty incidence, governance performance, and public debt sustainability. The Nigerian economy, being highly dependent on crude oil exports and vulnerable to external shocks, continues to experience significant disruptions arising from global events such as: pandemics, geopolitical conflicts, inflationary pressures, and international financial downturns. The study revealed that, these global crises contribute to exchange rate volatility, rising inflation, declining government revenue, and widening fiscal deficits, thereby undermining macroeconomic stability and limiting effective economic planning. Furthermore, the findings indicate that, global crises negatively affect investment inflows by reducing investor confidence and increasing capital flight, which in turn slows industrial growth and economic diversification. Employment levels are also, adversely affected as businesses downsize or shut down due to economic uncertainty, leading to increased unemployment and underemployment. In addition, governance challenges such as: weak institutional capacity, policy inconsistency and poor crises response mechanisms were identified as key factors that exacerbate the impact of global crises on Nigeria’s political economy. The study also, established that, rising public debt, driven by increased government borrowing during economic downturns, has significantly constrained fiscal space and reduced the government’s capacity to invest in critical development sectors. The study concludes; that global crises have far-reaching consequences on Nigeria’s political economy, affecting economic stability, governance effectiveness, and sustainable development outcomes. It therefore, recommends economic diversification, stronger institutional frameworks and enhanced crises preparedness to build resilience against future global shocks.