EXCHANGE RATE FLUCTUATIONS ON THE ECONOMIC GROWTH IN NIGERIA

This study empirically investigated the effect of exchange rate fluctuations on the economic growth in Nigeria. The study spanned from 2000 to 2019. The independent variable is foreign exchange fluctuations measured by Exchange Rate, Inflation Rate, Interest Rate, Broad Money Supply, and Oil revenue while the dependent variable is economic growth measured by Real gross domestic product. Data for the study were sourced from Central Bank of Nigeria Statistical Bulletin (2019) while the sourced data were analyzed using trend analysis. Findings drawn from the study established that on the overall all foreign exchange fluctuation proxies had high statistical significant effect on economic growth. However, on individual basis, exchange rate exerted negative statistical significant effect on economic growth throughout the study period while inflation rate and oil revenue exerted positive statistical insignificant effect on economic growth. Meanwhile, broad money exerted positive statistical significant effect on economic growth. Hence, the study concludes that exchange rate and broad money supply are instrumental to the growth of the Nigerian economy. To this end the study recommends that foreign exchange trading related issues should be addressed with a view to improve the current depreciating state of the Nigerian currency.