Balance of Payment Equilibrium, Global Pandemic and Economic Growth in Nigeria

Benjamin Olusola Abere; Sule Asimu Momoh

doi:10.56201/ijebm.vol.11.no6.2025.pg139.151

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Balance of Payment Equilibrium, Global Pandemic and Economic Growth in Nigeria

Benjamin Olusola Abere, Sule Asimu Momoh

Abstract

The nexus between balance of payment equilibrium, global pandemic and economic growth in Nigeria is investigated in this study using yearly time series data from 1986 to 2023. Investigating the long-term relationships between gross domestic product, export, import, government expenditure on health and pandemic and exchange rate is the aim of the study. The secondary data needed for the analysis came from the Central Bank of Nigeria (CBN) Statistical Bulletin and the World Bank development indicators. The study uses both the Error Correction Model and the Autoregressive Distributive Lag technique to co-integration to examine the long-term relationship between each of balance of payment equilibrium, global pandemic variables and economic growth in Nigeria. The result confirms that Export of goods and services and economic growth in Nigeria have favorable long-term relationship. It also demonstrated the long-term negative relationship between Nigeria's LGDP (Gross Domestic Product) and import of goods and services and economic growth in Nigeria (LIMP). It also demonstrated the long-term negative relationship between Nigeria's LGDP (gross domestic product) and government expenditure on health and global pandemic (LGEP). It also demonstrated the long-term negative relationship between Nigeria's LGDP (gross domestic product) and exchange rate (LEXR). Accordingly, the study recommends that: international donors, including the United States, should consider how COVID- 19 and containment measures like lockdowns, border closures, and travel restrictions have exacerbated economic hardship and do more in putting lasting solution to it. Morealso to discourage import of commodities which are also produced government should make an efficient use of all the resources in the economy to build a strong non-oil sector where mechanically based agricultural sector is developed, technologically based industrialization is put in place and highly or

Keywords

Balance of PaymentExportImportGlobal PandemicGross domestic product

References

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Balance of Payment Equilibrium, Global Pandemic and Economic Growth in Nigeria

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