Select Currency
Translate this page


Format: MS WORD  |  Chapter: 1-5  |  Pages: 73  |  1157 Users found this project useful  |  Price NGN3,000






1.1    Background to the Study

Exchange rate plays an increasingly significant role in any economy as it directly affects domestic price level, profitability of traded goods and services, allocation of resources and investment decision. The stability of the exchange rate is today a formidable bedrock of all economic activities. Since the adoption of the Structural Adjustment Programme (SAP) in 1986, Nigeria has moved to various types of floating regimes of exchange rate from the fixed/pegged regimes between 1960s and the mid-1980s. Floating exchange rate has been shown to be preferable to the fixed arrangement because of the responsiveness of the rates to the foreign exchange market (Otuori, 2013). The liberalisation of the exchange rate regime in 1986 has led to introduction of various techniques with the view of finding the most appropriate method for achieving acceptable exchange rate for the Naira. The frequency with which these measures were introduced and charged is informed by the determined efforts of the monetary authorities to unrelentlessly combat the unabating depreciation and instability of the Naira exchange rate.

According to Ngereboa and Ibe (2013) exchange rate is the ratio between a unit of one currency and the amount of another currency for which that unit can be exchanged at a particular time. Exchange rate of currency is the link between domestic and foreign prices of goods and services. Also, exchange rate can either appreciate or depreciate. Appreciation in the exchange rate occurs if less unit of domestic currency exchanges for a unit of foreign currency while depreciation in exchange rate occurs if more unit of domestic currency exchanges for a unit of foreign currency. In a continued effort to stabilised the exchange rate, as well as ensure a single exchange rate for the Naira, numerous variants of market determined rates have been adopted since 1986. The Second-tier Foreign Exchange Market (SFEM) was introduced in 1986, while the First and Second tier markets were merged into enlarged Foreign Exchange Market (FEM) in 1987, this was later changed to the Inter-Bank Foreign Exchange Market (IFEM) in January 1989. This new system allowed for bureau de change to source for their foreign exchange requirement from the IFEM. This was later modified the Autonomous Foreign Exchange Market (AFEM) in 1995 which allow the Central Bank to purchase foreign exchange from oil companies (Taiwo and Adesola, 2013).

Despite these policies, the exchange rate of the Naira has remained unstable since the deregulation period. The need to investigate the impact of this fluctuating exchange rate on the financial performance of the banking industry is important for the economy. For a country that is import dependent, the stability of its exchange rate is important for credit allocation (Adebiyi, 2006). It is therefore important to examine how the level of volatility of exchange rate affects economic growth in Nigeria. The impact of exchange rate fluctuations on economic growth in Nigeria still presents controversies because there is no consensus on whether the impact is negative or positive as shown in the results of previous studies. Hence, this study will close the gap in knowledge by exploring the impact of exchange rate fluctuation on economic growth in Nigeria focusing on 2000-2015.

1.2    Statement of the Problem

Unstable exchange rate of Nigeria’s domestic currency (Naira) which is domiciled in US dollars has in some cases made returns on investment to be negative, thereby discouraging investments in thecountry. Osinubi and Amaghionyeodiwe (2009) opined that the Naira/US Dollar exchange rate has witnessed a continuous slide in all the segments of the foreign exchange market (that is official bureau de change and parallel markets). In the official exchange market, it has depreciated progressively leading to a precarious operating environment which can be attributed to the reason why Nigeria has not only been unable to attract foreign investment to its fullest potentials but also has had a limited domestic investment. Despite the vast investment opportunities in the country, many would be investors shy away as a result of uncertainties in the investment climate which can be attributed to high exchange rate volatility in Nigeria. A historic examination of foreign exchange movement in Nigeria shows a considerable level of volatility, thus necessitating the need to determine its effect on economic growth in Nigeria. therefore, this study seeks to examine the impact of exchange rate fluctuation on economic growth in Nigeria focusing on 2000-2015.

1.3    Objectives of the Study

The study will be conducted with the following objectives:

i. To examine the impact of exchange rate fluctuation on gross domestic output in Nigeria.

ii. To investigate the impact of exchange rate volatility on foreign direct investment in Nigeria.

iii. To find out the link between exchange rate fluctuations and manufacturing sector output.

1.4    Research Questions

This study will be guided be the following research questions:

i.  What is the impact of exchange rate fluctuation on gross domestic output in Nigeria?

ii.  Does exchange rate volatility have any impact on foreign direct investment in Nigeria?

iii. What is the relationship between exchange rate fluctuations and manufacturing sector output?

1.5   Research Hypotheses

The researcher intends to test the following hypotheses:

Hypothesis 1:

Ho: There is no significant relationship between exchange rate fluctuation and gross domestic output in Nigeria.

HI:  There is a significant relationship between exchange rate fluctuation and gross domestic output in Nigeria.

Hypothesis 2:

Ho: Exchange rate volatility has no impact on foreign direct investment in  Nigeria.

HI: Exchange rate volatility has an impact on foreign direct investment in  Nigeria.

Hypothesis 3:

Ho:  There is no significant relationship between exchange rate fluctuations  and manufacturing sector output.

HI:  There is a significant relationship between exchange rate fluctuations and manufacturing sector output.


Not What You Are Looking For?

For Quick Help Chat with Us Now!

+234 814 010 7220

+233 541 351 187

Here's what our amazing customers are saying

Emmanuel Essential
Kogi state University
I actually took the risk,you know first time stuff But i was suprised i received as requested. I love you guys 🌟 🌟 🌟 🌟
Very Good
Azeez Abiodun
Moshood Abiola polytechnic
I actually googled and saw about iproject master, copied the number and contacted them through WhatsApp to ask for the availability of the material and to my luck they have it. So there was a delay with the project due to the covid19 pandemic. I was really scared before making the payment cause I’ve been scammed twice, they attended so well to me and that made me trust the process and made the payment and provided them with proof, I got my material in less than 10minutes
Very Good
Gbadamosi Solomon Oluwabunmi
Swift delivery within 9 minutes of payment. Thank you project master
Ajayi Crowther University, Oyo
I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!
Ahmadu Bello University
I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!
Temitayo Ayodele
Obafemi Awolowo University
My friend told me about iprojectmaster website, I doubted her until I saw her download her full project instantly, I tried mine too and got it instantly, right now, am telling everyone in my school about, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work
Very Good
Stancy M
Abia State University, Uturu
I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much iprojectmaster, infact, I owe my graduating well today to you guys...
Ibrahim Muhammad Muhammad
Usmanu danfodiyo university, sokoto
It's a site that give researcher student's to gain access work,easier,affordable and understandable. I appreciate the iproject master teams for making my project work fast and available .I will surely,recommend this site to my friends.thanks a lot..!
Dau Mohammed Kabiru
Kaduna State College of Education Gidan Waya
This is my first time..Your service is superb. But because I was pressed for time, I became jittery when I did not receive feedbackd. I will do more business with you and I will recommend you to my friends. Thank you.
Very Good
Joseph M. Yohanna
Thanks a lot, am really grateful and will surely tell my friends about your website.


  • Select 3 Project Topics of your choice from your Department.
  • Submit the 3 topics to your Supervisor for Approval.
  • Call Our Instant Help Desk on +234 814 010 7220 and Get Your Complete Project Material Instantly.
  • All project materials on this website are well researched by professionals with high level of professionalism.


How do i choose a Project Topic?

Look for your department and select any topic of your choice

I have a fresh topic that is not on your website. How do I go about it?

How fast can i get a complete project from your website?

Within 15 minutes if the exact project topic is on our website

Is it a complete research project or just materials?

It is a Complete Research Project i.e Chapters 1-5, Abstract, Table of Contents, Full References, Questionnaires / Secondary Data

One of your topics suites my project, but the case study is different. What do i do?

Call Our Instant Help Desk Now: +234 814 010 7220 and you will be responded to immediately

How do i get my complete project?

Your Complete Project Material will be sent to your Email Address in Ms Word document format

Can I get my Complete Project through WhatsApp?

Yes! We can send your Complete Research Project to your WhatsApp Number

What if my Project Supervisor made some changes to a topic i picked from your website?

Call Our Instant Help Desk Now: +234 814 010 7220 and you will be responded to immediately

Do you assist students with Assignment and Project Proposal?

Yes! Call Our Instant Help Desk Now: +234 814 010 7220 and you will be responded to immediately

What if i do not have any project topic idea at all?

Smiles! We've Got You Covered. Chat with us on WhatsApp Now to Get Instant Help: +234 814 010 7220

How can i trust this site?

We are well aware of fraudulent activities that have been happening on the internet. It is regrettable, but hopefully declining. However, we wish to reinstate to our esteemed clients that we are genuine and duly registered with the Corporate Affairs Commission as "PRIMEDGE TECHNOLOGY". This site runs on Secure Sockets Layer (SSL), therefore all transactions on this site are HIGHLY secure and safe!