Central Bank Of Nigeria Research Articles

Institutional Quality, Monetary Policy and Banking System Stability in Nigeria

The study used a Generalized Method of Moments to examine the effect of six IQ indices (voice and accountability, rule of law, regulatory quality, government effectiveness, corruption control and political stability and absence of violence) and MP tools (monetary policy rate, loan-deposit ratio, lending rate, logarithm of broad money supply and banking system liquidity ratio) on the Z-Score, a proxy for banking system stability. The study found that, among the six MP indices, only corruption control index has a positive and significant effect on bank stability (coefficient = 0.245124, p = 0.0042). Also, out of five MP variables, only the loan-deposit ratio has a significantly positive effect on bank stability (coefficient = 0.0070482, p = 0.0072). The effect of the other IQ and MP indicators are not significant enough for inference purposes. We conclude that IQ affects banking system stability positively and significantly. We also found that MP affects the stability of the banking system positively and significantly. We recommend, among others, that authorities should continue to pursue zero corruption in institutions and that banks should be mandated to improve on the existing anti-corruption measures. Also the Central Bank of Nigeria should continue to maintain the range of loan-deposit ratio that has existed for many years. There is the need to re-appraise other IQ and MP variables with no significant positive effect on banking system stability in Nigeria.

Digitalisation, Banking Stability and Nigeria's Economic Growth Trajectory

The integration of digital technologies in banking operations has become a cornerstone of economic policy to promote financial stability and foster economic growth. This study examines the interplay between digitalisation and banking industry stability and economic growth in Nigeria. Annual time series data spanning 1981 to 2022, except for the digitalisation variable (web payment) which covers a shorter period, was collected from the Central Bank of Nigeria’s Statistical Bulletin. Using the Least Squares estimator to analyse the multiple regression model, the study found that digitalisation and financial deepening negatively impact economic growth due to digital prematurity and financial shallowness. However, bank stability and bank assets positively influence economic growth. The study concludes that although digitalisation and financial deepening have the potential to enhance growth, as seen in studies for other nations, Nigeria’s digital maturity level is too low to propel economic growth effectively. Nonetheless, stability in the Nigerian banking industry and bank assets contribute positively to the country’s economic growth trajectory. The study suggests that banks should invest more in digital transformation to foster economic growth. Additionally, banks should provide more credit to private sector and integrate the unbanked population into formal banking processes to enhance financial deepening, which is a key driver of growth in both aspiring and regional peer countries of Nigeria. Finally, banks should continue to build a strong asset base, not only for regulatory purposes but also to leverage large assets for valuation benefits, collateral for loans, risk exposure diversity, competitive advantage, and growth opportunities.

Oil Revenue, Institutional Quality and Economic Growth in Nigeria

This study examined the interaction of oil revenue and institutional quality on economic growth in Nigeria over the period of 1993 - 2022. The World Development Indicator (WDI) and the Central Bank of Nigeria (CBN) statistical bulletin were the sources of the annual time series data used in this study. Employing the Autoregressive Distributed Lag (ARDL) estimation technique, findings reveal that oil revenue impacts economic growth positively in the short-run but negatively in the long run, while institutional quality exhibits positive impact in both the short-run and long-run period. It was also discovered that the interaction of oil revenue and economic growth could enhance economic growth in Nigerian both in the short-run and long-run period. Access to clean fuels and technologies contributes positively to economic growth in both short-run and long-run period, while fiscal policy rating only has statistically significant positive association with economic growth in Nigeria over the observed period. This study therefore recommends the need to strengthen political institutions for effective utilization of oil revenue, and implementation of strategic diversification policies for the development of other sectors in the economy for economic prosperity in Nigeria.

Suffering Together: Photos and Stories of Nsukka Residents During Nigeria's 2023 Currency Redesign Crisis

The Central Bank of Nigeria's (CBN) attempt to redesign the 200, 500, and 1000 naira notes by December 2022 led to a cash crunch and humanitarian crisis, exposing the federal government's shortsightedness and inherent weakness. Amidst the crisis that peaked between late January and February 2023, opportunities for social connections and shared experiences emerged. In this essay and visual archive, I explore the financial crisis phenomenon in Nsukka metropolis, Southeastern Nigeria, from a historical perspective, integrating personal insights, respondents' views, and archival sources. Analysis of observational notes, visual and textual data through the lens of Critical Theory reveals the importance of social connection and cultural ideology among Nsukka residents during a difficult time in Nigerian history. Photographic images of crowded bank scenes and remarks like "You are not the only person" evoke personal and public misery and frustration during the currency redesign crisis. The argument is that those in power can create complex situations like artificial scarcity of valuable commodities for questionable reasons, while the masses bear the brunt and enact and demonstrate servility in the process.

Effect of capital market on economic growth: An analysis using the autoregressive distributed lag (ARDL) approach

The limits testing method known as ARDL (Autoregressive Distributed Lag) examines Nigerian capital market improvement and monetary development. Relevant indicators about the capital market are taken into account during analysis while considering influencing factors as well. This study aims to explore the relationship between the capital market and financial development in Nigeria. The study’s theoretical framework, which is based on the ARDL framework, includes both short- and long-term dynamics. The data used in this analysis was collected from the Central Bank of Nigeria (CBN), the World Bank database, and the Nigerian Stock Exchange (NSE). In this study, the Nigerian All-Share Index, foreign direct investment, currency exchange rates, and inflation rates are the free factors, while the increase in GDP is the dependent factor. Through cointegration analysis using the ARDL framework, it was discovered that in Nigeria there’s a lengthy equilibrium correlation between economic expansion and financial development. The coefficients determined allow for a deeper understanding of how capital market factors affect economic growth over time. Furthermore, utilizing an error correction model derived from the ARDL analysis offers insight into both brief dynamics and modified speed toward reaching a lasting state of balance. By utilizing the ARDL approach, this study adds to the continuing discourse surrounding how capital markets impact growth in Nigeria. Its empirical evidence provides valuable knowledge for policymakers and stakeholders looking to utilize capital markets effectively toward achieving long-lasting economic development within the country.

Deposit Money Bank Credit and Non-Oil Export in Nigeria

The non-oil sectors play a crucial role in driving in­dustrial transformation and generating foreign exchange for a nation. Therefore, the performance of this sector is influenced by the implementation of policies and programs, as well as the availability of credit facilities from deposit money banks (DMBs). This study examines the relationship between DMBs' credit and non-oil exports in Nigeria from 1986 to 2022. The data is analysed using the bounds test co-integration procedure of Autoregressive Distributed Lag (ARDL). The results indicate that there is a significant (Prob. < 0.05) positive relationship be­tween DMBs' credit and exchange rates. Furthermore, DMBs' lending rate and inflation rate demonstrate a significant nega­tive relationship, while gross fixed capital formation shows an inverse relationship with non-oil exports in Nigeria. The cau­sality test reveals no causality between bank credit to non-oil sectors, exchange rate, and the volume of non-oil exports in Ni­geria. However, there is a unidirectional causality between gross fixed capital formation, the lending rate of banks, the in­flation rate, and non-oil exports in Nigeria. Based on these find­ings, it is recommended that both the government and the monetary authorities make concerted efforts to stabilise the macroeconomic variables and promote growth-oriented programs meant to boost the aim of enhancing the production of locally produced goods in the non-oil sectors of Nigeria. Additionally, the Central Bank of Nigeria should consider re­ducing the bank rate, as this would directly impact other rates within the country.

Taxes and Health Infrastructural Development in Nigeria

This study investigated the effect of taxes on health infrastructural development in Nigeria. The objectives of the study among others were to determine the effect of company income tax on health infrastructural development in Nigeria, evaluate the effect of petroleum profit tax on health infrastructural development in Nigeria. Four research questions and four hypotheses were formulated as a guide for the study. This study adopted ex post facto research design and secondary data were collected from the National Bureau of Statistics, Federal Inland Revenue Service (FIRS), Central Bank of Nigeria (CBN) and Federal Ministry of Finance. The study was for forty-one (41) years from 1982 to 2022. This study utilized descriptive statistics, unit root test and ordinary least square regression method of data analysis with the aid of E-View 12. The findings of the study were that company income tax is statistically positive and significant on health infrastructural development in Nigeria, customs and excises duties is statistically positive and significant on health infrastructural development in Nigeria, petroleum profit tax is statistically negative and significant on health infrastructural development on health infrastructural development in Nigeria is statistically negative and insignificant, and value added tax is statistically negative and insignificant on health infrastructural development in Nigeria. Hence, study concluded that the federally collected taxes influence health infrastructural development in Nigeria. From 1982 – 2022. Consequently, the study suggested amongst others that, government should intensify efforts at developing the level of health infrastructure in the country through optimal tax revenue mobilization because, the study affirmed that company income tax and customs and excise duties positively and significantly impact on health infrastructural development in Nigeria.

Taxes and Road Infrastructural Development in Nigeria

This study examined the taxes and road infrastructural development in Nigeria. The specific objectives of the study among others were to determine the relationship between of company income tax on road infrastructural development in Nigeria, ascertain the relationship between petroleum profit tax on road infrastructural development in Nigeria. Four research questions and four hypotheses were formulated as a guide for the study. This study adopted ex post facto research design. The population of the study was conducted on Federal Republic of Nigeria under the National Bureau of Statistics, Federal Inland Revenue Services, Central Bank of Nigeria (CBN) and Federal Ministry of Finance. The study period covered was forty-one (41) years spanning from 1982 to 2022. This study utilized Descriptive statistic, Unit Root Test and Ordinary Least Square Regression method with the aid of E-View 12. The findings of the study showed a positive and significant relationship between company income tax on road infrastructure in Nigeria; customs and excises duties positively and significantly affects road infrastructure in Nigeria; petroleum profit tax negatively and insignificantly affects road infrastructure in Nigeria and finally, value added tax negatively and insignificantly influence road infrastructure in Nigeria is statistically negative and insignificant. The study concluded that taxes such as company income tax, custom and excise duties affects road infrastructural development in Nigeria for the period spanning from 1982 – 2022. Therefore, the study suggested amongst other that, government should intensify efforts at developing the level of infrastructure in the country through tax payers’ revenue because, this study affirmed that company income tax and customs and excise duties positively and significantly affects road infrastructure in Nigeria

THE OIL PALM (Elaeis guineensis) ENTERPRISE FINANCING UNDER AGRICULTURAL CREDIT GUARANTEE SCHEME IN NIGERIA

The limited engagement of financial institutions in providing loans and advances to oil palm enterprises under the Agricultural Credit Guarantee Scheme (ACGS) has impeded the sustainable development of these enterprises. This study examined the trends in ACGS loan guarantees, repayments, and outreach to oil palm beneficiaries in Nigeria from 1981 to 2022. The analysis utilized time series data sourced from the Central Bank of Nigeria's statistical bulletin. Both exponential and quadratic trend equations were estimated using the Ordinary Least Squares (OLS) method. The findings indicated a positive exponential growth rate for the value of guaranteed loans (25.05%), repaid loans (15.20%), and the number of beneficiaries (7.37%) over the specified period. The quadratic trend equations suggested stagnation in growth rates over time for both guaranteed loans and repayments by beneficiaries. Furthermore, the quadratic analysis indicated a significant deceleration in growth over a double time period, suggesting that the growth occurred at a diminishing rate. It is recommended that the volume of ACGS loans allocated to the oil palm sector be increased in accordance with the prevailing inflation rate, and that the selection of beneficiaries be refined to ensure that only genuine applicants are identified.

Fiscal policy and inclusive growth in Nigeria

This study investigated the effect of fiscal policy on inclusive growth in Nigeria from 1985-2022. Secondary data on the human development index, the ratio of total tax revenue to GDP, total government expenditure, inequality, and government expenditure on infrastructure and education were sourced from the Central Bank of Nigeria (CBN) and the United Nations Development Programme (UNDP). The Autoregressive Distributed Lag (ARDL) technique was employed as the main analytical tool. The ARDL Bounds test showed that in the long run, government expenditure on infrastructure, and education, has a positive and insignificant relationship with inclusive growth (human development index) in Nigeria. Also, total government expenditure and the ratio of total tax revenue to GDP have a negative and insignificant relationship with inclusive growth (human development index) in Nigeria. Interestingly, inequality has a negative and significant relationship with inclusive growth (human development index) in Nigeria. In the short run, the ratio of total tax revenue to GDP and government expenditure on infrastructure has a negative and significant relationship with inclusive growth (human development index) in Nigeria. At the same time, government expenditure on education, total government expenditure, and inequality has a positive and significant relationship with inclusive growth (human development index) in Nigeria. These results highlight the vital role that responsible fiscal policy management plays in promoting sustainable development and inclusive growth. The study recommended a need to augment tax revenue, enhance capital investment, and address income inequality to bolster inclusive growth efforts in the country further.

Contributions of Tax Revenue and Government Expenditure to Sustainable Development Goals in Nigeria

This study empirically examined the effect of tax revenue and government expenditure on sustainable development goals in Nigeria. The ex-post facto research design was adopted using time series data sourced from the Central Bank of Nigeria's statistical bulletin and World Bank database. The study covered 22 years from 2001 to 2021. Descriptive and inferential statistical tools were used in analyzing the data after carrying out unit root tests on the stationarity of the series to avoid obtaining invalid and unauthentic regression estimates. The Vector Error Correction Model (VECM) was applied in analyzing the relationship. The study found that Tax Revenue (TR) exhibited a negative and significant effect on sustainable development goals, while Government expenditure (GEXP) indicated a positive and significant effect on Sustainable Development Goals (SDGIS) in the long run. Furthermore, the study revealed that in the short-run Tax Revenue (TR) and Government expenditure (GEXP) both had a negative effect on the SDGIS in Nigeria. There is need for government to develop strategies to broaden the tax base and bring more entities into the tax net while ensuring equitable contribution. They should also align budget allocations with SDG priorities to ensure tax revenue is directed sustainable development projects. Hence the study recommended that government should channel its resources towards closing up infrastructural deficits while increasing productive units that would enhance the economy and ensure optimal utilization of tax revenue towards sustainable developments in Nigeria especially in the achievement of the Sustainable development goals.

Analysis of Income Potentials of Blocks Making Industry in Zamfara State, Nigeria

The study is an analysis of the income potentials of blocks making industry in Zamfara state. The research employs the used primary sources of data, whereby the data was obtained from the responses of 100 blocks making industry entrepreneurs in the study area, who were selected with the aid of simple random sampling method. Descriptive and inferential statistics were employed for data analysis thus, multiple regression analysis using OLS model. The findings revealed that, blocks industry has potentials to generate income in the study area in other words, blocks making industry in Zamfara state has is an important tool for in terms of income generation, the study recommends among others that, in addition to the existing policy by government in supporting SMEs to get access to finance, more windows should be open by the Central bank of Nigeria, Bank of Industry and Commercial Banks to enable SMEs have more access to finance.

The democratization of digital currency in Nigeria: A sentiment analysis of eNaira app usability

Globally, Central Bank Digital Currency (CBDC) is receiving a lot of attention in digital currency deliberations since it is at the top of the agenda of almost every central bank today. Although there is a growing body of literature on CBDCs, user perspectives on their usage and adoption in the literature are very sparse. This study set out to analyze factors impacting the actual usage of CBDC through sentiment analysis of eNaira, the first CBDC to be issued in Africa by the Central Bank of Nigeria (CBN). The research relies on the 214 data points extracted from eNaira App users’ comments from Google Play and App Store from 2020 to 2021. It framed its analysis based on theories of moral sentiments and appraisal theory of emotion. This research shows that eNaira users faced multiple challenges; however, CBN's responses to these challenges are minimal. The results highlighted the need to include public sentiments in policy formulation; the Nigerian government's ban on cryptocurrency trading negatively impacted the uptake of the eNaira due to mistrust. This research study contributes theoretically to appraisal theory and the theory of moral sentiment by explaining the evolution and public sentiments towards adopting the novel eNaira in Nigeria.

FINANCIAL INCLUSION AND POVERTY IN NIGERIA

This study examined the effect of financial inclusion on poverty alleviation in Nigeria from 1982 to 2020. It highlights the importance of financial inclusion as a tool to combat poverty, emphasizing the significant impact of poor financial inclusion on the inability of the poor to access financial services, thereby exacerbating poverty levels. The study utilized data from the Central Bank of Nigeria (CBN, 2022) statistical bulletin and the World Development Indicators (World Bank, 2022). The study employed descriptive statistics, correlation analysis, unit root tests (Augmented Dickey Fuller and Phillips-perron tests), and the Auto Regressive Distributed Lag (ARDL) model to analyze the data and assess the relationship between financial inclusion and poverty. The findings revealed both short-term and long-term negative relationships between financial inclusion and poverty in Nigeria. Specifically, variables such as the number of commercial bank branches, loans by rural bank branches, and credits to the private sector were found to have a negative association with poverty. Conversely, lending rates were positively correlated with poverty levels. Additionally, while credits to the private sector and loans by rural bank branches were statistically insignificant, the number of commercial bank branches showed significance at a 5% level. Based on the findings, the study recommended several policy measures to enhance financial inclusion and alleviate poverty in Nigeria. These recommendations include expanding the Small and Medium Enterprises Development Fund (MSMEDF), reducing lending rates, and lowering the cost of delivering financial services to improve access to financial services for the poor. Keywords: Credits, Credits to private sector, Financial inclusion, lending rates, per capita income, poverty.

Effect of Bank Credit to the Private Sector on the Performance of Manufacturing Sector in Nigeria

The study investigated the effect of bank credit to the private sector on the performance of manufacturing sector in Nigeria, from 1981 – 2021. The objective of the study is to determine the effect of bank credit to the private sector (CPS) on the manufacturing output in Nigeria. To carry out the study, data were sourced from the Central Bank of Nigeria statistical bulletin and National Bureau of Statistics for various years. The dependent variable for the study was manufacturing output while the proxies for exploratory variable include; credit to the private sector (CPS); interest and exchange rates. For analysis and estimation, Autoregressive Distributed Lag (ARDL) method was adopted. Augmented Dicker Fuller (ADF) tests for stationarity showed that the variables were integrated at first level while ARDL Bound tests established a cointegration relationship of the variables. The result of the study revealed that credit to the private sector (CPS), interest rate; and exchange rate (independent variables) on the aggregate accounted for 93.9% of the total variations on manufacturing output (dependent variable) in Nigeria during the study period while 6.1% was due to stochastic error. The result further found out exchange rate had a positive coefficient value and a significant impact on manufacturing output in Nigeria during the period of study while other explanatory variables that include credit to the private sector and interest rate were statistically insignificant on manufacturing GDP during the study period. On the basis of the findings, the researcher recommends that Central bank of Nigeria as an apex bank should apart from using both direct and indirect controls should strengthen the use of moral suasion to encourage banks not to relent in granting the sector as the government endeavours to diversify the revenue sources of the economy. Secondly, government and Central Bank of Nigeria (the apex regulatory body of banks) should take bold steps and use all necessary economic and financial policies and regulations to make lending a single digit interest rate in Nigeria especially in a critical sector like agriculture.

Impact of exchange rate on economic growth in Nigeria

This study examined the effect of exchange rate dynamics on economic growth in Nigeria from 1985 to 2021. The study utilized secondary data sources from the World Development Indicators (WDI) and the Central Bank of Nigeria (CBN) Statistical Bulletin. It employed real gross domestic product as a measure of economic growth. In addition to the official exchange rate as a proxy for exchange rate dynamics, the study integrated other domestic factors that can affect economic growth, such as trade openness and external reserves. The econometric techniques employed in the study were unit root tests, cointegration, and autoregressive distributed lag (ARDL)/bound techniques. Following the outcome of the bound test, it was reported that a long-run relationship exists between economic growth, exchange rate, trade openness, and external reserves. The long-run ARDL results reveal that the exchange rate had a positive and statistically significant effect on real GDP in Nigeria, with a unit increase in the exchange rate raising the real GDP by 0.3986 units in the long run; trade openness had a positive and not statistically significant impact on real GDP in Nigeria, suggesting that a unit increase in trade openness increases real GDP by 0.0025 units in the long run; and external reserves had a positive and statistically significant impact on real GDP in Nigeria, indicating that a unit increase in external reserves increases real GDP by 0.4007 units in the long run. Based on the results, the study recommends that the government should develop policies that stabilize the exchange rate. This could involve enhancing foreign exchange reserves management, improving the transparency and predictability of foreign exchange interventions, and possibly considering a more flexible exchange rate regime that can adapt to external shocks while maintaining stability. Policies should focus on gradually opening up the economy to international trade through strategic trade agreements that protect key domestic industries while promoting sectors where Nigeria has a competitive advantage. This approach will help mitigate any negative short-term impacts while capitalizing on long-term benefits. Keywords: Exchange Rate, Trade Openness, External Reserves and Real Gross Domestic Product.

Electronic Marketing Strategies and Customer Satisfaction of Commercial Banks in Port Harcourt, Rivers State

The study examined the relationship between Electronic Marketing Strategies and Customer Satisfaction of commercial banks in Port Harcourt, Rivers State. The study adopted the correlation survey research design. The target population of this study comprised of 21 registered commercial banks in Port Harcourt, Rivers State gotten through the Central Bank of Nigeria. Given a population of 21 banks which is less than thirty (30), the study adopted a census approach and undertook a study of the entire 21 banks with a focus on the staff (ICT personnel, Service Managers and Business Development Managers). To generate data for the study, sixty-three (63) copies of the questionnaire were given to the twenty-one (21) registered Banks in the frame of three (3) copies per bank. The questionnaire was structured on a four (4) point Likert scale. The data collected through the questionnaire were analysed using Pearson Product Moment Correlation. From the bivariate analysis carried out, it was discovered that electronic marketing strategies showed a significant relationship with customer satisfaction of commercial banks in Port Harcourt, Rivers State. It was revealed that content marketing showed a very strong and significant relationship with customer retention of commercial banks in Port Harcourt, Rivers State. Also, e-mail marketing showed a moderate and significant relationship with customer retention of commercial banks in Port Harcourt, Rivers State. The study concludes that electronic marketing strategies are significant predictors of customer satisfaction of commercial banks in Port Harcourt, Rivers State. The study recommends that banks should create content on various social media platforms as this would increase customer retention and they should adopt e-mail marketing in reaching out to customers. This would increase customer patronage and retention.

THE IMPACT OF LIQUIDITY RISK ON PROFITABILITY OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Objective: The study examined the relationship between liquidity risk and the profitability of Nigeria's listed deposit money banks in Nigeria over a 16 years period from 2008 to 2023. Method: Panel data on cash reserve ratio, liquidity ratio, loan to deposit ratio, and return on equity were collected from the annual reports and financial statements of the five systemic banks listed on Nigerian Exchange Group from 2008-2023. Ordinary least square regression analysis, panel unit root test, Hausman test were used in analysing the data. Results: The study found a significant positive relationship between the cash reserve ratio, loan to deposit ratio and profitability of Nigerian deposit money banks. But liquidity ratio has a negative but insignificant relationship with profitability of deposit money banks in Nigeria. Conclusion: Based on the findings, the research recommends that the Central Bank of Nigeria (CBN) must act quickly to lower cash reserve ratios in order to help Nigeria's deposits banks operate more effectively. Banks should engage competent and qualified personnel in order to ensure that right decision are adopted with regard to the optimal level of liquidity and the loan-to-deposit ratio should be fully utilized by banks to support sales initiatives.

Impact of Monetary Policy on Exchange Rate Stability in Nigeria

This study investigates the impact of interest rates, money supply, and Central Bank reserves on exchange rate stability in Nigeria. Utilizing quarterly economic data from 1980 to 2023, sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin, the research employs a longitudinal survey design to assess the relationships between these monetary variables and exchange rate volatility. The findings indicate that interest rates, money supply, and Central Bank reserves significantly influence exchange rate fluctuations, with Central Bank reserves having the most substantial impact. Specifically, interest rates exhibit a moderate effect on exchange rate volatility (t = 3.513, p = .001, Beta = .342), while money supply also significantly affects exchange rate volatility (t = 2.713, p = .010, Beta = .305). Central Bank reserves, however, have the most pronounced impact (t = 4.141, p = .000, Beta = .467). These results highlight the critical role of monetary policy in maintaining exchange rate stability. The significant positive relationship between interest rates and exchange rate volatility suggests that monetary authorities should carefully consider the ramifications of interest rate adjustments. Similarly, the influence of money supply underscores the need for meticulous management to prevent destabilization. Robust Central Bank reserves emerge as a crucial buffer against exchange rate fluctuations, emphasizing the importance of effective reserve management policies. The findings provide actionable insights for policymakers aiming to enhance exchange rate stability through strategic interest rate policies, careful money supply management, and maintaining adequate Central Bank reserves.

Assessment of exchange rate determination in a mono-resource economy: A case of Nigeria

<p style="text-align:justify"><span style="font-size:16px"><span style="font-family:Times New Roman,Times,serif"><span dir="ltr" lang="EN-US"><span style="color:black">This study examined the determinants of the exchange rate in a mono-resource economy, during the period of currency and oil price fall in Nigeria. The aim of the study is to ascertain the potentiality of economic diversification (non-oil export) in saving the falling value of the domestic currency, as well as, its stability. The study employed the use of monthly data from the Central Bank of Nigeria and Nigeria National Petroleum Corporation from January 2008 to December 2020 using the ARDL and NARDL models to achieve the stated objectives. In the literature, several empirical studies analyzed the relationship between exchange rates, oil price, and oil export and came to the logical conclusion that a rise in the price of oil would bring about a rise in the exchange rate, all things being equal while the reverse is the case. To add to the existing body of knowledge this study did not only look at the relationship between the variables but also examined the determinants of the exchange rate in a mono-resource economy and ascertained the potentiality of economic diversification in bringing succor to the falling exchange rate in the midst of falling oil price. The NARDL result corroborates the findings of previous studies on the relationship between exchange rate, oil price, and the performance of non-oil export. It maintains that positive changes in oil prices would lead to the appreciation of domestic currency while negative changes in oil prices would lead to the depreciation of the domestic currency. With this analysis, the study recommends the diversification of the economy and revitalization of the non-oil sector. Since import proves to have a negative impact on the exchange rate, the revitalization of the non-oil sector stimulates domestic consumption and thus reduces import bills which raise the demand for the dollar and weakens the naira.</span></span></span></span></p>