Paper Contents
Abstract
The aim of this paper is to examine the financial implications of a mono cultural economy in Nigeria. The data comprises yearly time series data covering the period from 1981 to 2023. Financial markets are persistent and can be predicted based on their historical data. Using the ARDL framework, we find that petroleum and natural Gas sector performance drives stock market performance but has no significant effect on both money market and foreign exchange market. Also, our findings show that oil refining sector performance has no significant impact on all three financial markets at the 5% level significance level. Finally, we find evidence that agricultural sector performance significantly drives market capitalization but has no significant impact on both exchange rate and treasury bills performance. Based on these findings, we conclude that the Nigerian monocultural economy has weak implications on its financial markets which underscores the urgent need for economic diversification.
Copyright
Copyright © 2025 Nwulu, Stephen Onyemere. This is an open access article distributed under the Creative Commons Attribution License.
