The Impact of Corona Virus on Capital Flight in Nigeria
Aloamaka Ifeanyi Judith
Department of Business Administration and Marketing, Faculty of Management Sciences, Delta State University, Asaba Campus, Delta State – Nigeria
Akan David Chucks
Department of Accounting, Banking & Finance, Faculty of Management Sciences, Delta State, University, Asaba Campus, Delta state – Nigeria
ABSTRACT
Covid-19 and its “blow” on the different facets of life would remain in the sand of times even after several years of its existence. Nigeria has faced several crises in recent times, ranging from political, security, and even religious crises. Many researchers have been studying the effect of some causes of these crises in a bid to proffer solutions to them. Among the causes include capital flight. Some researchers concluded that capital flight has increased poverty in the country, leading to frustration and misbehavior of the Nigerian youths. The study, therefore, assessed the impact of Covid-19 on capital flight in Nigeria. Foreign Direct Investment and Foreign Investment Portfolio were used to proxy capital flight. GDP represented economic growth. The chow test was used in ascertaining if Covid-19 impacted capital flight in Nigeria. The result revealed that there is no significant impact on the capital flight by Covid-19. The study, therefore, recommended that the Government should increase the interest rate and improve on other social amenities that could cause youth restiveness and improve capital inflow.