Foreign exchange fluctuations on the performance of agricultural export in Nigeria

Abstract

The study examines the effect of foreign exchange fluctuation on the performance of agricultural export in Nigeria. Despite the emphasis place on foreign exchange, the agricultural export in Nigeria is still not performing well. Time frame was from 1986 to 2021 and the adopted research design was ex post facto, in which the tool of analysis employed was the ARDL, ECM method, co-integration and unit root test as finding revealed that foreign exchange fluctuation on the performance of agricultural volume and value added has negative and insignificant effect in Nigeria. While foreign exchange fluctuation on the performance of agricultural capacity utilization has a positive and significant impact. Giving this finding, recommendations are that Nigerian government should moderate and regulate the rate of exchange activities in order to make certain that it brings about better performance in the agricultural sector. Also, she should strongly attempt to make better the stand of the economy internationally with other nations of the world in order to expand the market for Nigerian agricultural exports. Finally, the government should change the focus of its policy in direction to the external agricultural sector and making sure that it adds in the most favourably way to output performance. As an intentional policy, the government should give support to rural area agriculture by which investors in distinct communities and commodities should be encourage to set up agricultural industries, which will be solely on local raw materials comprising equipment and machines.