Role of Credit Default Swaps (CDSs) and the Nigeria Economy: Re-Examination of Osuoha Needs of Derivatives Market in Nigeria
Sani Hussaini Gimi1 & Sanusi Lawal2
Department of Business Administration
Faculty of Management and Social Sciences
Federal University Gusau, Zamfara State.
Email: gimi@gmail.com & lawalsan@yahoo.com
ABSTRACT: The paper examines derivatives roles in 2008 world financial turmoil. Even though many factors have contributed to the financial deterioration in the credit market, many studies have identified a single factor, credit default swaps (CDSs) as the major culprit in the crisis. It also looks at literatures on the Nigerian economy during the aforementioned event. It is an exploratory that re-examines Osuoha (2010) “and identify needs to transform Nigeria Economy through the use of derivatives”. There are arguments in favour and against the views. The fact to be established is that, derivatives’ trading is more applicable to developed and emerging economies but not under-developed economies like Nigeria. The study recommends that derivatives’ trading is basic for Nigerian financial trading.Keywords: Derivatives market, credit default swaps (CDSs), financial crisis
