This study examined the relationship between exchange rate and economic growth in Nigeria between 1981 and 2020. The specific objectives are to determine the effects of exchange rate, inflation and interest rate on gross domestic product (GDP). The data on the variables were obtained from the Central Bank of Nigeria (CBN) Statistical Bulletin and World Development Indicators, and analyzed using descriptive statistics, unit root as well as bounds cointegration tests and ARDL model. The unit root test results showed that the variables are mixed integrated. While inflation is stationary at levels, the other variables in the model were stationary at first difference. The bounds cointegration test showed that long run relationship exists between GDP growth and the underlying explanatory variables. The findings showed that exchange rate and inflation negatively impacted on economic growth. This finding indicates that increase in exchange rate and price level is detrimental to the growth of the Nigerian economy. There is evidence of a significant positive effect of interest rate on GDP growth. This finding explains the reality in Nigeria, where businesses and households tend to borrow even as interest rate increases, but tend to cut corners by reducing the quality of their products and services or pass-on the increased costs of borrowing to consumers by increasing prices. Given the findings, this study recommends amongst others that the federal government through the CBN should ensure that exchange rate policy should is consistent to provide opportunity for a realistic and stable exchange rate capable of driving economic growth in Nigeria.
The paper studied oil revenue and behavior of selected macroeconomic indicators in Nigeria from 1981-2019. The main purpose were interest rate, inflation rate and exchange rate within the time frame. The paper was anchored on the Endogenous growth theory. The study adopted ex-post facto research method while Ordinary Least Square was used to process the data gathered using E-view software. The findings indicates that apart from interest rate, no significance relationship exist between the two other variables study with oil revenue. While the study concludes that inflation rate and exchange rate can be stabilized through effective monetary policy measure. The study therefore recommends diversification and encouragement of more participation of nongovernmental sector in economy development.
To ensure full employment of human resources has been a major problem in Nigeria over the years. This research investigated the influence of corruption on employment level in Nigeria from 1994 to 2019. Corruption is used as explanatory variable; employment rate is used as explained variable and inflation rate is explored as a control variable. The study engaged regression method for the analysis. The outcome from the inquiry revealed that the combine influence of both corruption and inflation rate have a long run equilibrium connection with the level of employment. Corruption has significant inverse influence on the level of employment. Inflation rate taken in isolation has significant negative influence on the level of employment. Employment rate and corruption are negatively correlated and it is a strong correlation. Employment rate and inflation rate are negatively correlated but a weak correlation. Based on the findings, the investigation concludes that corruption has a significant inverse influence on employment rate in Nigeria. The implication is that, increase in corruption will lead to a decline in employment rate. It is thus recommended that Government should establish more institutions to monitor the activities of EFCC and ICPC since in recent times officials in those institutions are found in corrupt practices.
This study empirically assessed the impact of real interest rate on savings mobilization in Nigeria. The Vector- Auto Regression (VAR) was employed, using the time series data from 1980 to 2008. The study revealed that real interest rate has negatively impacted on the level of savings mobilization in Nigeria. The need for government in Nigeria to bridge the existing gap between the lending and savings rates and increase per capita income level of the populace, to stimulate savings for investment and economic growth were revealed by the study. Therefore, efforts should be geared towards reducing domestic inflation rate to arrest its negative impact on real rates in Nigeria.