EXCHANGE RATE VARIABILITY AND GROWTH OF NIGERIAN INDUSTRIAL SECTOR: TREND AND DESCRIPTIVE ANALYSIS
Abstract:This paper assessed the trend between exchange rate
variability and growth of Industrial sector in Nigeria. In this study,
secondary data over the period 1980 – 2018 was used and the trend analysis and
descriptive statistical technique were considered as analytical tools. Data
were sourced mainly from the publications of the Central Bank of Nigeria (CBN)
namely; CBN Statistical Bulletin, CBN Statement of Accounts and Annual Reports,
and the Nigerian Bureau of Statistics publications. The study found that a
relationship exists between the industrial productivity growth rate, ratio of
industrial production to gross domestic product, exchange rate, interest rate.
In order to determine the short term dynamics around the equilibrium
relationship, exchange rates emerged as significant determinant of industrial
productivity growth rate in Nigeria. The analyses suggest the significance for
Nigerian policy makers to embark on robust and all-inclusive exchange rate
policies in order to accelerate and sustain growth of Nigerian Industrial
sector.