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.