ABSTRACT
This study was undertaken to assess the effort of exchange rate on the manufacturing industries in Nigeria. The study was embarked upon because of the increasing concern about the potency of exchange rate policy in addressing the problems inherent in the manufacturing industries in Nigeria. Furthermore, efforts were made to find out how exchange rate policies have contributed to the growth of the gross domestic product (GDP) out its general impact on the Nigeria economy (field, flexible/floating exchange rate, etc) as well as issues and efforts is has had on the manufacturing sector. Secondary sources of data collected were utilized. It was revealed that the manufacturing industries in Nigeria was capacity by and large unity instability in production target, capacity utilization, revealed generation, low output productivity, and the sectors contribution to the gross domestic product (GDP) of Nigeria has been very low over the years. It was revealed that the problems or the instability in the exchange rate policy of Nigeria. Thus, serve recommendations usable made which include: That these should be consistency in the implementation of the exchange rate policy. Also, that the exchange rate policy should be used in correcting the fundamental imbalance in the manufacturing sector. Another recommendation made was that the government should maintain and properly enforce the ban on importation of goods having local substitute. Such an action would enhance the productivity of the manufacturing industries in Nigeria.
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