Empirical Analysis of the Effect of COVID-19 Pandemic on the Nigeria Financial Market

Abstract: This study examines the empirical effects of the COVID-19 pandemic on Nigeria’s financial market, using a survey research design and structured questionnaires administered to 150 participants from financial institutions, regulatory bodies, and corporate entities within Gwagwalada Area Council, FCT, Abuja. Stratified random sampling was employed to ensure representative data, which were analyzed using descriptive statistics, mean scores, and Chi-square tests. The findings indicate a significant adverse impact of the pandemic on the Nigerian money market, capital market, and foreign exchange market, including increased government borrowing, reduced foreign investment, rising interest rates, a declining All Share Index, capital outflows, liquidity shortages, Naira depreciation, and a widening current account deficit. The study concludes that COVID-19 severely disrupted various segments of the Nigerian financial market and recommends the implementation of robust regulatory frameworks to enhance market resilience through improved surveillance, greater transparency, and stricter compliance with prudential regulations.