Exchange Rate and Nigerian’s Economic Performance

Abstract

The study examined how the exchange rate impacts Nigeria's economic growth. An ex-post facto research design was employed utilizing Autoregressive Distributed Lag (ARDL) model. The results showed the presence of long-run relationships among the variables. The findings indicate that about 41% of the short-run imbalance is corrected every year. The findings further showed
exchange rate positively but insignificantly impacted GDP growth rate (proxy for economic growth) in the long run, while its impact was negative in the short run. Based on the results, the research recommends that the government of Nigeria, through its monetary authorities, should ensure the stability of the naira exchange rate relative to those of its trading partners to foster longrun economic growth in the country.