The COVID-19 Pandemic: Capital Importation to Banking Business

Abstract

This paper investigated the decline of capital importation to Nigeria and specifically banking business in Nigeria in the pre-COVID-19 pandemic era and during the COVID-19 pandemic era. The investigation became necessary considering the high prevalence of the COVID-19 pandemic in most of the top countries with capital exportation into Nigeria and the sharp decline in the importation of capital. Bringing, liquidity and stability of the banking business into concern. Data on capital importation were extracted from the CBN Statistical Bulletin and analyzed using a test for equality of means with both the Anova and Welch F-tests. We found that there is statistically significant difference in the averages of the capital importation to the banking business and Nigeria as a whole between the two periods of concern. We recommend that this [the reduction in the capital importation] should be monitored intermittently to ensure survival, stability, liquidity and enhanced share premiums of the banks. Also, the regulating authorities should regulate towards promotion of liquidity and stability in the financial system by permitting certain policies to take effect, such as transforming from Plc. to HoldCo structure.