National Bureau Of Statistics Research Articles

Monetary policy transmission tools and private sector performance – the Nigerian experience

Credit to private sector is considered vital for the stimulation of domestic investment, job creation, economic growth, and general improvement in the standard of living of the people. This is because the economic activity in the private sector significantly complements governments’ efforts in attaining macroeconomic objectives, globally. However, as laudable as the benefits of credit to private sector has been in catalyzing private sector performance in developed economies, the situation in most transitioning economies, particularly, Nigeria has been far from satisfying. Several studies in academic literature have identified political instability, poor institutional framework, absence of fiscal transparency, macroeconomic factors and frequent policy changes as having significant constraining influences on credit availability in Nigeria with plausible recommendations to private sector performance. However, the absence of noticeable improvement over the years, and its accompanying growth-retarding multiplier effects on domestic investment and productivity in Nigeria has instigated more concentrated studies on the direct impact of monetary policy framework in the determination of the performance of private sector through credit availability. Therefore, this study empirically evaluates the impact of key monetary policy toolkits on the availability of private sector credits and performance in Nigeria. To this end, annual time series secondary data from 1993 to 2023 were sourced from National Bureau of Statistics and Central Bank of Nigeria Statistical Bulletins for various years within the study period. The study adopts Autoregressive Distributed Lag (ARDL) estimation technique after carrying out pre-diagnostic tests such as ADF unit root test and Bound Cointegration test. Our result reveals that money aggregates (MAG) is positive and significant in explaining variations in private sector credit and performance. Further results reveal that monetary policy rate (MPR), open market operations (OMO) and inflation rate (INR) impacted negatively on the performance of private sector in Nigeria within the study period. Therefore, the study concludes that the performance of the private sector in Nigeria will improve with increased credit availability, which is positively influenced by systematic increase in money aggregates and efficiently expanded monetary policy framework. The study recommends adoption of a harmonious blend of a more relaxed monetary policy framework with purposeful compliant-based regulation that will free up liquidity for increased private sector credits and performance. Keywords: Credit to Private Sector, Monetary Policy Rate, Open Market Operations and Money Aggregates.

A Critical Examination of the E-Taxation, Improvement in Tax Compliance and Revenue Collection of Economic Development in Nigeria: An Examination covering 2008 to 2023.

This study looked into the topic of e-taxation and enhanced tax compliance in Nigeria. The study aimed to achieve two particular goals. It investigated the impact of e-taxation on tax evasion in Nigeria, as well as the extent to which e-taxation has contributed to the reduction of tax avoidance in Nigeria. The study's analysis used secondary quantitative data from the Federal Inland Revenue Services (FIRS) and the National Bureau of Statistics (NBS). The study found that e-taxation had a considerable beneficial impact on tax evasion in Nigeria. The study found that the mean value of tax revenue increased after the implementation of e-taxation when compared to the mean value before the adoption of the e-taxation system. It also indicated that e-taxation has greatly helped in curbing the issue of tax evasion in Nigeria. The data analysis revealed a greater mean value for tax revenue following the implementation of e-taxation as compared to the mean value before the e-taxation system. The report provided numerous important recommendations, including the necessity for FIRS to develop an electronic tax payment system mobile App that will raise awareness and simplify the country's e-tax system. This study concluded that the e-taxation system in Nigeria achieves higher tax compliance than the manual approach.

Threshold Analysis of Fiscal Policy Variables and Private Investment in Nigeria

This paper investigates the relationship between fiscal policy variables and private investment in Nigeria for the period 1970 – 2019 with a view to establishing the threshold level of each of the key fiscal policy variables in relation to private investment. The study employed annual and quarterly time series data covering the period 1970:1 to 2019:4 which were sourced in part from the Central Bank of Nigeria’s Statistical Bulletin and National Bureau of Statistics (NBS). Data collected were analyzed using econometric techniques. The variables used were private domestic investment, budget deficit, recurrent and capital government expenditure, oil and non-oil government revenue and public debt. The main findings are: First, there is an evidence of a double threshold effects of the fiscal balance. When exceeding a budget deficit level of 3.98 per cent of GDP or a fiscal surplus level of 3.2 per cent of GDP, private investment is negatively affected. Also, increase in government total expenditure beyond the third regime made private investment to become less productive. As regards public debt, the results revealed that private investment had the most positive impact on economic growth in the first regime of public debt. A resort to public debt beyond this level will make private investment less productive thereby inhibiting growth. The study therefore, concludes that government should be cautious in resulting to debt instruments to finance its deficit. It should also make a concerted effort to increase its expenditure especially in the provision of infrastructural facilities as this directly influence private investment decision positively.

Fuel Subsidy Removal and Macroeconomic Performance in Nigeria

The government of Nigeria removed fuel subsidy on the premise that fuel subsidy is a drain on government finances, causes macroeconomic instability, and generates adverse social welfare in the country. The objective of this paper is to examine the effect of fuel subsidy removal on macroeconomic performance in Nigeria. The paper adopts a desk review method and obtains secondary data from the documents of reputable organizations such as the Central Bank of Nigeria, the National Bureau of Statistics, and the Nigerian National Petroleum Company Ltd. Descriptive statistics was employed for the analysis of data. The study found out that the removal of fuel subsidy resulted in the increase of premium motor spirit price across the country generating inflationary trend. It improved revenue generation for government expenditure, curtailed cross border smuggling and corruption inherent in the downstream sector of the petroleum sector. It was based on these findings that the paper recommends a proper coordination of the fiscal policies and the Central Bank of Nigeria to effectively manage the macroeconomic effect of the subsidy removal. It is also important for the government to develop an effective communication strategy to engage stakeholders on the necessity for the subsidy removal and put in place an effective palliative measure to alleviate the attendant adverse conditions that it generated.

Subnational institutions, firm capabilities and eco-innovation

Abstract We examine the role institutional pressures, at the subnational level, play in the generation of eco-innovations and explicitly consider how they interact with firms’ heterogeneous capabilities and ownership characteristics. Theoretically, we combine elements from institutional theory with the resource-based view of the firm to develop our hypotheses. Empirically, we use a novel dataset over the period 2003–2013 compiled from several sources: (I) environmental regulations (city-level) from the China Environmental Statistical Yearbooks and City Statistical Yearbooks; (II) green patents (firm-level) from the China National Intellectual Property Administration; and (III) ownership (firm-level) from the National Bureau of Statistics. Our econometric analysis employs an instrumental variable (IV) approach that controls for endogeneity and a negative binomial multilevel methodology for robustness. The results show that institutional pressures associated with environmental regulations, implemented at city level, lead to more green patents produced by firms in these jurisdictions. Crucially, the effectiveness of environmental regulation is enhanced when firms invest more in their internal technological capabilities. Finally, we find that a firm’s affiliation with a business group enhances the positive effects of regulations in terms of the production of eco-innovations.

Demographic determinants of poor childhood immunization coverage among women in Bayelsa state

The study examined at the extent demographic factors influence childhood immunization coverage in Bayelsa State. The design was cross-sectional. The total female population of Bayelsa State is estimated to be 1,116, 200.9. National Population Commission and National Bureau of Statistics (2016); National Bureau of Statistics (2018) According to the World Health Organizatio, women of reproductive age account for 22% of the total population of 501, 502 people. The study population consists solely of women in Bayelsa State who have child(ren) between the ages of 0 and 5 years. A multi-stage procedure was used to select 20 women with at least one child under the age of five from each selected community, yielding a sample size of 1100. The instrument's internal consistency was assessed using Cronbach's Alpha statistics, yielding a reliability of 0.77. At the 0.05 level of significance, simple regression statistics was used to analyze the hypotheses. The findings revealed that mothers’ age and education influence childhood immunization coverage, as the educated and older mothers have higher probability of getting their children immunized completely. Maternal education was recommended in the State, also that the National Orientation Agency should ensure mass media exposure and community education awareness and campaigns on immunization.

Water Governance: Challenges and Prospects for the Implementation of Sustainable Development Goal Six in Nigeria

The primary objective of this study is to review all Nigerian National Water and Sanitation Policies implemented since 1993. The aim is to assess their performance, efficiency, and alignment with the targets set forth in UN Sustainable Development Goal 6 (SDG 6). This review provides a contextual understanding of the challenges and opportunities for implementing SDG 6 in Nigeria. We conducted a critical appraisal and qualitative analysis of the 2016 Nigerian National Water Resources Policy, the most recently published policy, in relation to the targets of SDG 6. Our findings indicate that seven out of the eight SDG 6 targets are addressed in the policy. These include safe drinking water, sanitation and hygiene, pollution reduction, water-use efficiency, trans-boundary cooperation, and protection of water-related ecosystems. However, the policy falls short in involving local communities in water and sanitation management, which is the eighth requirement of SDG 6. Specifically, only 28 states have a dedicated Rural Water Supply and Sanitation Agency (RUWASSA), and few local government areas have Water Supply and Sanitation Hygiene Departments (WASH) as required by SDG 6. Our assessment of the policy's implementation and practices is based on secondary data sources, notably from the United Nations, the World Health Organization, and the National Bureau of Statistics. We argue that by developing effective implementation strategies that involve local communities, the 2016 National Water Resources Policy can significantly contribute to achieving sustainable water and sanitation management for all Nigerians by 2030.

A Brief Discussion on Weighing Medicine in Ounces: An Innovative Quantitative Medicine Capsule Device

According to the main data bulletin of the seventh national census released by the National Bureau of Statistics, the proportion of China’s population aged 60 and above reached 18.7%, while the proportion of the population aged 65 and above reached 13.5%. This aging of the society in China continues to exacerbate. Currently, most pharmaceutical packaging bottles are only used to package and store medicines. The existing medicine bottles containing tablets or small granules of Chinese patent medicines have larger lids and do not consider the convenience for patients when taking out medicine pills. Excessive pills will be expelled when pouring out from existing medicine bottles due to the large lids. The pills that exceed the dose need to be put back into the medicine bottle, which poses a risk of contamination and brings inconvenience to life. Hence, a quantitative medicine dispensing device is proposed to solve this issue.

Promoting Age-friendly Finance and Bridging the "Digital Divide"

With the rapid development of mobile Internet and artificial intelligence, young and middle-aged people are enjoying the convenience of online shopping, ordering food, buying groceries, transferring money and so on, while at the same time the elderly are suffering from difficulties in payment, traveling, medical care, shopping and so on, which has become a "digital divide" in front of the elderly. According to the data released by the National Bureau of Statistics at the end of 2022, China's population aged 60 and above is 28,040,000, accounting for as much as 19.8% of the total population, of which 209,780,000 are aged 65 and above, accounting for nearly 15%, which means that China is facing the problem of deep aging. Therefore, how to promote the reform of aging and provide financial services suitable for the elderly has become a new opportunity for commercial banks to enhance their market competitiveness and overtake in the "silver economy".

An analysis of financial protection and financing incidence of out-of-pocket health expenditures in Kazakhstan from 2018 to 2021

Universal health coverage relies on providing essential medical services and shielding individuals from financial risks. Our study assesses the progressivity of out-of-pocket (OOP) payments, identifies factors contributing to healthcare expenditure inequality, and examines catastrophic health expenditures (CHE) prevalence in Kazakhstan from 2018 to 2021. Using retrospective analysis of National Statistics Bureau data, we employed STATA 13 version for calculations CHE incidence, progressivity, Lorenz and concentration curves. In 2020–2021, OOP expenditures in Kazakhstan decreased, reflecting a nearly twofold reduction in the CHE incidence to 1.32% and 1.24%, respectively. However, during these years, we observe a transition towards a positive trend in the Kakwani index to 0.003 and 0.005, respectively, which may be explained by household size and education level factors. Increased state financing and quarantine measures contributed to reduced OOP payments. Despite a low healthcare expenditure share in gross domestic product, Kazakhstan exhibits a relatively high private healthcare spending proportion. The low CHE incidence and proportional expenditure system suggest private payments do not significantly impact financial resilience, prompting considerations about the role of government funding and social health insurance in the financing structure.

Public Sector Capital Expenditure and Tax Revenue Generation in Nigeria

Public sector capital expenditure is an important issue that cannot be ignored due to how it relates to tax revenue generation in Nigeria. This study examined the impact of public sector capital expenditure on tax revenue generation proxy by petroleum profit tax (PPT) in Nigeria. The baseline theory of this study is the Keynesian theory. The research design adopted in this study is the quasi-experimental research design. Secondary data was collected from the National Bureau of Statistics and CBN statistical bulletin. The multiple regression analysis based on the OLS method aided by E-view version 12 computer software was used to analyse the data, and the results were used to test the hypotheses. The findings showed positive significant relationship between the capital expenditure on road construction and PPT in Nigeria. It also revealed a significant positive relationship between capital expenditure on power, light and that PPT in Nigeria. The study revealed significant positive relationship between capital expenditure on security and PPT in Nigeria. Therefore, the study concluded that public sector capital expenditure played a vital role in improving tax revenue generation in Nigeria. The study recommends that since there is a positive relationship between capital expenditure on security, road construction and power with that of PPT, the variables should be sustained in this study. Government should look for means to solve the security challenges in the country, construct more roads, revolutionize electricity and power generation so as to enhance tax revenue generation in Nigeria.

Forecast of the number of nursing beds per 1000 older people from 2023 to 2025: Empirical quantitative research.

This research aims to offer a reference point for relevant departments to enhance the allocation of ageing resources and formulate policies accordingly. This study is designed as empirical quantitative research. Data from the National Bureau of Statistics and the Ministry of Civil Affairs regarding older adults (aged≥60) from 2000 to 2022 and nursing beds from 1978 to 2022 were analysed. The differential autoregressive integrated moving averages model and Monte Carlo simulation were used to predict the growth of nursing beds per 1000 older people in China for the Years 2023-2025. It is projected that from 2023 to 2025, China will experience a further increase in its ageing population, with an average annual growth rate of 3.1%. By 2025, the number of older people in China is expected to surpass 300 million. Additionally, there will be a rise in the number of nursing beds, with an average annual growth rate of 1.9%, leading to a total of 8.79 million nursing beds by 2025. However, due to the rapid growth of the older population, there will be a slight decline in the number of nursing beds per 1000 older people in China, with an average annual growth rate of -1.00%.

Economic Sustainability and Gas Flaring in Nigeria

The crude oil exploration leads to the flaring gas, which affects Nigerian economic sustainability. The empirical study is to inquire about the profitable (economic) sustainability of the flaring of natural gaseous substances in Nigeria. The survey is to employ the ready-made design through the National Bureau of Statistics, Central Bank of Nigeria Statistical Bulletin, Department of Petroleum Resources, and World Development Indicators. The Autoregressive Distributed Lag (ARDL) model and Augmented Dickey-Fuller test are employed as the estimation technique and unit root test for long-range presence association between the exogenous and explained variables. The findings of the study showed an insignificantly positive outcome of profitable (economic) growth on natural gas flaring in Nigeria. The current employment rate showed a positively insignificant impact on the gas flare. The current oil revenue value showed a positively significant impact on gas flaring. Meanwhile, the oil revenue lag showed an insignificantly negative impact on Nigerian naturally flared gaseous substances. The research recommends that the relevant natural gas authorities should put in place stringent laws to reduce the flaring of natural gas consequences to the well-being of humans, the environment, and the economic growth and development of the country. Alternatively, the government should encourage sound and viable gas flaring processes of industrial and domestic usage.

POLITICS OF THE FUEL SUBSIDY REGIME, SUBSIDY REMOVAL, AND NIGERIA’S EXTERNAL RELATIONS

This study examines the implications of fuel subsidy removal for Nigeria’s external relations. Employing the ex-post facto research design, the primary data for the study were generated from focus group discussions with foremost economists, policy analysts, and experts in the oil sector. Other information was sourced from texts, periodical reports of the Central Bank of Nigeria, National Bureau of Statistics, Petroleum Products Pricing Regulatory Agency, Nigerian National Petroleum Corporation Limited, and Nigerian Statistical Bulletin. A qualitative descriptive method is used to analyse the data. Anchored on a theoretical perspective of linkage politics, the study finds that subsidy removal, which is Nigeria’s domestic policy, has far-reaching impacts on the nation’s external relations. The policy ultimately shapes relations between Nigeria and other states on the global scene. Nigeria must effectively manage the challenges brought about by subsidy removal to maintain and strengthen its international ties and to open doors for more trade and investment with nations that are strategic to its development aspirations.

Nexus between participation in nonfarm enterprises and poverty among rural farm households: evidence from Nigeria

PurposeDespite a reduction in poverty the global population in 2015, the incidence of poverty remains very high in Sub-Saharan African countries. Most of the countries in the region are agrarian, with most of their population residing in rural areas, and a majority of the poor in the region are found in Nigeria. This study examined the nexus between participation in nonfarm enterprises (NFEs) and poverty among rural farm households in Nigeria and across the six geopolitical zones.Design/methodology/approachThe Nigerian Living Standard Survey (NLSS) conducted in 2018–2019 by the National Bureau of Statistics was used. We made use of 13,440 farm households with useful information for the purpose of this study. The sample comprises 6,885 households that participated in NFEs and 6,555 nonparticipating households. The data were analyzed with Foster, Greer, and Thorbecke (FGT) (1984) metrics, probit, and fractional probit models at p = 0.05.FindingsThe incidence of poverty was lower among the participating households than in the nonparticipating households. Participation in NFEs had a mitigating effect on poverty. We also established that zonal differentials in poverty rates exist among households in all the analyses. Participation in NFEs was influenced by individual, household, and institutional factors and was also able to explain the depth of poverty among the respondents.Practical implicationsIt is suggested that poverty alleviation policies should be targeted at improving access to nonfarm economic activities by rural farm households residing in vulnerable geopolitical zones.Originality/valueThis study is the first attempt to profile household poverty based on the type of NFEs they are involved in. The study also provides an insight into the effect of the state of residence on zonal poverty models, which is expedient if the country must achieve Sustainable Development Goal 1 on the eradication of poverty everywhere.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-06-2023-0493

The Influence of Tax Service Quality on Presumptive Taxpayers’ Compliance in Tanzania: A Case of Ilala Tax Region

This study was conducted to examine the influence of tax service quality on presumptive taxpayers’ compliance in Tanzania: a case of Ilala Tax Region. The study was guided by three specific objectives as indicated by independent variables namely Tax Service Reliability, Tax Service Responsiveness and Tax Service Tangibility. The study adopted a positivist philosophy, employed a deductive approach, and utilized survey strategy. The study was conducted in Ilala Municipal with a sample of 384 respondents. Probability sampling procedure was applied through simple random sampling technique. The study used both primary and secondary data. Primary data was collected through questionnaires. Peer reviewed journal articles relevant for the subject matter, national tax and trade statistics reports from Tanzania Revenue Authority (TRA) and National Bureau of Statistics (NBS) were reviewed for secondary data. Data was analyzed using the OLS regression model. This study has found that Tax Service Reliability and responsiveness has no significant influence on presumptive tax payer’s compliance in Ilala Tax Region. Also the study revealed Tax Service Tangibility to have a significant positive influence on presumptive taxpayers’ compliance in the Ilala tax region. From the results, this study recommends Tanzania Revenue Authority (TRA) to focus on enhancing the perceived reliability of their tax services, including measures to ensure consistent interpretation and application of tax regulations, improving the accuracy of tax assessments, expediting the issuance of tax-related documents, enhancing the transparency of tax procedures and policies, and maintaining reliable online tax filing systems. Additionally, they should prioritize improving responsiveness to taxpayers’ needs by enhancing the promptness of addressing inquiries and concerns, making tax authority representatives more accessible through various communication channels, offering comprehensive assistance and guidance, and ensuring clarity in tax-related communication materials to enhance taxpayers’ understanding and compliance.

Unemployment and Educational Attainment in Nigeria

The tragedy of jobless growth makes the increasing rate of unemployment among school leavers a cause of grave concern in Nigeria. Based on the human capital theory, this study examines the dependence of unemployment on educational attainment in Nigeria from 1990-2020 using the autoregressive bounds test approach. Data were sourced from National Bureau of Statistics (NBS), Central Bank of Nigeria (CBN) and other secondary data sources. The study employed variables such as the primary graduation rate, secondary graduation rate, tertiary graduation rate, government expenditure on education and inflation rate. Our findings show that among other factors, government expenditure on education as well as primary, secondary and tertiary graduation rates significantly brought about a reduction in unemployment in Nigeria both in the short and long run. We therefore recommend that government should increase its budgetary allocation to the education sector, as well as monitor the utilization of such funds. Government should also sensitize the public on the importance of education both on the individual and society at large.

Successive national agricultural policies/programmes, growth of gross domestic product (GDP) and expansion of agribusinesses in Nigeria.

In Sub Saharan Africa, agriculture's contribution to employment and Gross Domestic Product (GDP) is estimated to be higher than other sectors. Policies designed and implemented for the agricultural sector could be an influencing factor to the variations in the contributions of agriculture to the annual national GDP. These policies are believed to have shaped and (some) still shaping the landscape of agriculture and national economy. The study analysed agriculture's GDP contribution during the implementation of various national agricultural policies, and the potential of the policies to foster agrobusiness development in Nigeria between 2000 and 2021. The study adopted mixed-method approach. Primary data were collected through a structured questionnaire administered on 29 purposively sampled state Agricultural Development Programme (ADP) directors across Nigeria. The questionnaire was face-validated by three experts. Reliability test was carryout using Cronbach Alpha approach, which yielded an index of 0.89. Copies of the questionnaire were administered on the respondents through direct contact. Secondary data were collected from the Nigeria's Federal Ministry of Agriculture and Rural Development, National Bureau of Statistics, and World Bank. Data was analysed with mean, standard deviation, percentages and ANOVA. Findings of the study revealed that the performance of implemented agricultural policies had influence on agricultural sector's percentage contribution to national GDP, and changes in agriculture's GDP contribution had significant impact on national GDP growth. The duration of active life of the policies did not influence their performance, like the Root and Tuber Expansion Programme which lasted longer yet performed less than the National Special Programme on Food Security in terms of improvement in agriculture's GDP contributions. All the policies implemented had several limitations in their ability to foster agribusinesses in Nigeria. The study recommends that future policies should focus on providing sustainable frameworks for developing the business in agriculture through value chain optimisation and the use of the teeming, young, and affordable labour force like China and India did to become global food producers.

Tax Revenue and Economic Growth in Nigeria: A Bi-Directional Approach

The study examined the bi-directional effect of tax revenue and economic growth in Nigeria from 2011 to 2022 by employing total tax revenue and nominal Gross Domestic Product at current price. Data was extracted from 2011 to 2022 quarterly reports published on the website of the Central Bank of Nigeria, National Bureau of Statistics and Federal Inland Revenue Service. Unit Root test using Augmented Dickey-Fuller (ADF) test shows that at the first difference, the variables are stationary at 1%, 5%, and 10% level of significance while Engle and Granger co-integration test reveals significant evidence of a long-run relationship between the variables of the study’s models. Findings from Error Correction Model (ECM) estimation show that Total Tax Revenue has a positive and significant effect on Nominal Gross Domestic Product (t-stat 4.777; P-value 0.000) and Nominal Gross Domestic Product has a positive and significant effect on Total Tax Revenue (t-stat 5.552; P-value 0.000). The Granger Causality test revealed that there exists a positive and significant bi-directional effect between Total Tax Revenue and Nominal Gross Domestic Product in Nigeria. The study concludes that tax revenue has a positive and significant effect on economic growth and economic growth has a positive and significant effect on tax revenue. The study recommends that the government ensure continuous economic growth by providing human capital, security, employment, and foreign investment. This would increase the standard of living of citizens, increase tax payer’s income, and attract foreign investors who would pay tax on their income and properties.

Exchange Rate Dynamics and Agricultural Sector Performance Nexus: The Nigerian Experience

The main objective of the study is to investigate the impact of exchange rate dynamics on agricultural sector performance in Nigeria. The study employed time series data obtained from the Central Bank of Nigeria statistical bulletin, World Development Indicators and National Bureau of Statistics. Agricultural sector performance was disaggregated into the overall agricultural, crop, livestock and fishery output. Autoregressive Distributive Lag (ARDL) and Generalized Autoregressive Conditional heteroskedasticity (GARCH) estimation techniques were used to establish the long run relationship among the variables, and the responsiveness of overall agricultural output, crop, livestock and fishery production to changes in exchange rate. It was revealed that long run relationship exists among the variables in all the estimated models. The result of the Error Correction Mechanism (ECM) within the framework of the ARDL shows that exchange rate has significant impact on agricultural sector performance. The GARCH results revealed that the responsiveness of aggregate agricultural output, crop, livestock and fishery production to changes in exchange rate is negative and statistically significant. This study concludes that the government must consciously direct policy actions towards the agricultural sector to achieve its full potentials in order to place the Nigerian economy on the path of self- sufficiency in agricultural production. The study recommends that; the government should implement appropriate exchange rate policy that will ensure sufficient crop production for both domestic consumption and exports. The movement in the market determined exchange rate should be strictly monitored by the apex bank, in order to ensure that the deregulation in exchange rate is not counterproductive through distortionary prices on agricultural production.