Evaluating the Influence of Currency Exchange Rate on the Export Performance in Nigeria

Abstract: This study investigated the impact of exchange rates on export performance in Nigeria over the period 2010-2023, focusing on understanding how fluctuations in exchange rates influence export volumes and values. The study used quantitative data analysis to find the relationship between exchange rate and export performance in Nigeria. The data for the study was sourced from the Central Bank of Nigeria (CBN) Statistical Bulletins and the National Bureau of Statistics (NBS). The findings reveal that the Nigerian Naira exhibited steady appreciation against the US Dollar from 2010 to 2023, reflecting relative exchange rate stability during the period under review. Nigeria’s export sector showed a general upward trend in export volumes and values, indicating resilience despite global economic fluctuations and domestic challenges like infrastructure and regulatory issues. Regression and correlation analysis revealed a strong positive relationship between exchange rates (NGN/USD) and export values, suggesting that higher exchange rates are linked to increased export earnings. However, other factors such as global demand, commodity prices, and domestic policies also play significant roles. However, the study recommended that the policymakers in Nigeria should prioritize exchange rate management and trade policies aimed at enhancing Nigeria’s export competitiveness and promoting sustainable economic development.

Keywords: Exchange rate, Export performance, and Quantitative Data Analysis.