IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH (IJBFR )

E-ISSN 2695-1886
P-ISSN 2672-4979
VOL. 4 NO. 1 2018

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Effect of Naira Rate on Economic Growth in Nigeria

Michael Chukwunaekwu Nwafor

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Abstract

This research work explored the effect of Nigeria’s currency rate on the economic growth of Nigeria. It is focused on establishing the extent to which Naira rate have influenced economic growth from using data spanning between 2006 and 2016; and the extent to which the Naira rate has influenced inflation in Nigeria within the same time frame. This study however employed Ordinary Least Squares technique of analysis to construct a regression model to test stated hypotheses. Findings revealed that the Naira rate has no significant impact on economic growth in Nigeria and that the Naira rate has a significant influence on inflation rate in Naira. The study, therefore, recommends that the export base of Nigeria should be strengthened to ensure a sustainable impact and that local manufacturing should be fully encouraged.

keywords:

Naira; Exchange Rate; Inflation; GDP; Currency

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