The study interrogates the impact of exchange rate on the economic growth of Nigeria from 1981 to 2020 using quarterly time-series data from the Central Bank of Nigeria and the World Bank National Account. The dependent variable in the model was Real Gross Domestic Product (RGDP), and the independent variables were Exchange Rate (EXCHR), inflation (INFL), Interest Rate (INTR), Foreign Direct Investment (FDI), Broad Money Supply (M2) and Current Account Balance of Payment (CAB). The methodology employed was the Auto-Regressive Distributed Lag (ARDL) model which incorporates the Cointegration Bond test and Error-Correction Mechanism. The finding indicates that in the short run, EXCHR, CAB, M2 and FDI, had a positive impact on economic growth. The impact of EXCHR and CAB were significant on growth while that of M2 and FDI were insignificant to growth. However, INTR and INFL had a negative impact on economic growth with both variables being statistically significant. The bound test showed that there was a long-run relationship among the study variables, and the results from the long run reveal that the exchange rate has a positive and significant impact on economic growth. Inflation, Interest rate, FDI, Current Account Balance of Payment (CAB) and Broad Money Supply all have a positive and significant impact on economic growth. Based on the findings the study recommended that monetary authority should strictly monitor the operations of banks and other forex dealers with a view of ensuring unethical practices are adequately sanctioned to serve as a deterrent to others.

This study interrogated the impact of monetary policy on economic growth in Nigeria using annual time series data from 1981 to 2020. The paper used the growth rate of gross domestic product (GRGDP) as the endogenous variable, while, broad money supply (MS2), monetary policy rate (MPR), Inflation (INFL), liquidity ratio (LDQR) and exchange rate (EXCH) were the exogenous variables and proxies for monetary policy. Data were obtained from the Central Bank of Nigeria’s Statistical Bulletin of various years and World Bank National Account Data. The study used descriptive statistics, performed a unit root test using Augmented Dickey-Fuller, Autoregressive Distributed Lag (ARDL) Bound test, and to test for causality, Toda Yamamoto was deployed. Finally, the Toda Yamamoto Causality test revealed that all the exogenous variables had bi-directional causality with economic growth except for the exchange rate that had uni-directional causality with economic growth. In the light of the findings, the study recommends that Broad Money Supply (MS2) should be adequately managed and manipulated to achieve the needy growth, in line with pursued monetary policy stance of the monetary authority. Also, the monetary authority and the government should vigorously pursue policies that would increase financial inclusion in Nigeria as it would enhance the effectiveness of the monetary policy.

This study has examined the impact of exchange rate volatility on economic growth in Nigeria from the year 1981 to the year 2020. The study adopted secondary data (i.e. time series) obtained from World Bank National Account data and Central Bank of Nigeria Annual Statistical Bulletins, subjecting them to statistical analysis for relevant inferences to be made. Five variables were used in the study which were Growth rate of Gross Domestic Product (GRGDP), Exchange Rate Volatility (EXRV), Balance of Trade (BOT), Oil Price (OILP) and Inflation (INF) Rate. The variables were subjected to unit root test and they were stationary at different order of I(0) and I(1). Since the Variables were not all stationary at level but a mixed series, the ARDL bound test of cointegration was used to test for cointegration among them. Using the bound test, the variables were found to be cointegrated at 1% level of significance. The ARDL result indicated that; Exchange rate volatility has a significant impact on economic growth, with the impact being negative. In addition, other economic variables such as inflation has a negative and significant impact on economic growth while oil price have a positive and significant impact on economic growth. On the other hand, BOT has a positive effect on growth but the impact was significant at the 10 percent level. From the findings the study recommended that foreign exchange market should be well monitored with a view to ensuring that only ventures that would engender value added production in the real sector and export-oriented businesses should have more access. This will help to increase the value of the naira against major world currencies.