ANALYSIS OF FINANCIAL AND SOCIAL COSTS OF CRISES MANAGEMENT IN 2020- THE NIGERIAN EXPERIENCE

Authors: Adebiyi Julia Ph.D., Olatunji, Toyin E.Ph.D. FCA & Gbolagade Adekola M.SC

ABSTRACT

Nigeria as a third-world country has survived and is still striving through some major/minor crises over the last three decades. The friction or halt in business activities enforced by these phenomena attracts financial and non-financial costs. The main objective of this study is to analyze the financial/social costs of crisis management in 2020- the Nigerian experience.

The span of this study is from 2017 to 2021 with the Agricultural sector as the sampled population. Descriptive and inferential statistical tools, such as one sample t-test and multiple regressions were employed using secondary data.

The study found that there is a significant difference between financial/social costs before and during the covid 19 era in Nigeria given a critical p-value of 0.000 with the level of allowed error as 0.005 level of significance. Results also showed that the extent to which crises explain the variation in financial/social cost is 67.6 percent with rigid lockdown having the most effect with a beta value of 0.909.

It was concluded that the coronavirus had a significant effect on financial/social costs during the COVID-19 era in Third World Countries (Nigeria). Based on the findings of the study, it was recommended that the creation and enhancement of a national crisis management committee are unavoidable. This committee should consist of professionals from all works of life that should be abreast with the ongoing newness in their various fields alongside ready crisis combat teams. This committee should operate a culture of pre-planned readiness attitude to timely combat possible crises with a high rating of both national and regional economies. Furthermore, the committee should be on alert, and well-funded, and funds must be managed efficiently with little or no political interference.

Keywords: COVID-19, Insurgencies, Civil Unrest, Public Health Crisis, and Crisis Management

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