The effect of exchange rate adjustments on Nigeria’s export performance: Evidence from the CBN (2000–2020)
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style:
- Recommended for :
- NGN 5000
Background of the Study :
Exchange rate adjustments serve as a critical monetary tool for influencing a country’s trade dynamics and international competitiveness. In Nigeria, the Central Bank (CBN) has routinely employed exchange rate policies to enhance the competitiveness of Nigerian exports by altering relative price levels in the global market. Such adjustments are intended to make Nigerian goods more attractive abroad, thereby boosting export volumes and improving the overall trade balance (Nwosu, 2023). However, the outcomes of these policies have been mixed. Fluctuating exchange rates, coupled with external shocks and domestic economic vulnerabilities, often create uncertainty that can counteract intended benefits. Moreover, while some industries may thrive under a depreciated currency, others face increased production costs and volatile market conditions (Umeh, 2024). This study critically examines the effect of CBN-led exchange rate adjustments on export performance, investigating the balance between competitiveness gains and potential economic distortions. Through an analysis of historical data and policy outcomes, the research seeks to elucidate how monetary interventions impact export volumes, product competitiveness, and overall trade dynamics in Nigeria (Adewale, 2025).
Statement of the Problem
Notwithstanding the strategic use of exchange rate adjustments by the CBN, Nigeria’s export performance has not consistently met projected targets. The interplay of monetary policy with global market fluctuations has generated a volatile environment for exporters. Challenges such as increased production costs, currency volatility, and competitive pressures have undermined the stability and growth of export sectors (Ike, 2023). Moreover, the benefits of a more competitive exchange rate are often offset by the adverse impacts of inflation and external economic shocks. These issues raise concerns about the long-term effectiveness of exchange rate policies as a tool for promoting sustainable export growth. This study aims to dissect these challenges and provide a nuanced analysis of the exchange rate adjustments’ impact on export performance, highlighting areas for potential policy improvement (Chukwuemeka, 2024).
Objectives of the Study:
1. To analyze the relationship between exchange rate adjustments and export performance in Nigeria.
2. To assess the role of the CBN in implementing effective monetary policies.
3. To identify challenges and propose policy recommendations to enhance export competitiveness.
Research Questions:
1. How do exchange rate adjustments influence export performance in Nigeria?
2. What role does the CBN play in stabilizing export trends through monetary policy?
3. What are the primary challenges faced by exporters in a volatile exchange rate environment?
Research Hypotheses:
1. H1: Exchange rate adjustments positively affect export performance.
2. H2: The CBN’s monetary policies significantly influence Nigerian export competitiveness.
3. H3: External economic shocks moderate the impact of exchange rate adjustments on exports.
Significance of the Study (100 words):
This research offers critical insights into the effect of exchange rate adjustments on Nigeria’s export performance, informing policymakers and industry stakeholders. By examining the CBN’s monetary strategies, the study highlights key factors influencing trade competitiveness and export stability. The findings are intended to support the development of robust monetary policies that balance export promotion with macroeconomic stability, thereby contributing to improved trade performance and economic growth (Nwachukwu, 2023).
Scope and Limitations of the Study:
The study is limited to evaluating the effect of exchange rate adjustments by the CBN on Nigeria’s export performance, focusing exclusively on monetary policy interventions and export sector outcomes.
Definitions of Terms:
1. Exchange Rate Adjustments: Changes in the value of a country’s currency relative to others, implemented to influence trade dynamics.
2. Export Performance: The ability of a country to generate foreign exchange through the sale of goods and services abroad.
3. CBN: The Central Bank of Nigeria, responsible for formulating and implementing monetary policies.
Related Project Materials
The Impact of Fake Online Reviews on Brand Credibility
Background of the study
Fake online reviews have emerged as a significant concern in today’s digital marketplace,...
An appraisal of the impact of illegal mining on water quality in Ebonyi North Local Government Area, Ebonyi State
Background of the Study
Illegal mining has become a significant environmental threat in many regions, leading to severe water quality deg...
THE RELATIONSHIP BETWEEN TEACHERS QUALIFICATION AND STUDENTS ACADEMIC PERFORMANCE IN ENGLISH
ABSTRACT
This study was carried out on the relationship between teachers qualification and students academic performance in English. The...
An assessment of transparent data usage in digital marketing on brand trust: A case study of an online retailer in Kano, Nigeria.
Background of the study
Transparent data usage in digital marketing is critical for building and maintaining brand...
The Role of Community Engagement in the Success of Local Events in Gombe Local Government Area, Gombe State
Chapter One: Introduction
1.1 Background of the Study
Community engagement is a cornerstone of successful local events, fosteri...
IMPACT OF ADULT EDUCATION ON WORKFORCE DEVELOPMENT
Abstract: This study examines the impact of adult education on workforce development, focusing on how continuing education programs enhance th...
THE EFFECT OF EDUCATION AND TRAINING PROGRAMS ON WOMEN'S ENTRY INTO DECENT WORK IN IKWO LOCAL GOVERNMENT AREA
CHAPTER ONE
INTRODUCTION
ASSESSING THE PERCEPTION OF QUANTITY SURVEYOR ON ADOPTION OF E-PROCUREMENT TO MITIGATE CORRUPT PRACTICES IN PUBLIC PROCUREMENT
ABSTRACT
This study was carried out to to assess the perception of quantity surveyors on adoption...
An investigation of urban green spaces and their role in enhancing community well-being: A case study of Abuja
Background of the study
Urban green spaces, including parks, gardens, and recreational areas, are essential components o...
The influence of climate and weather conditions on students' participation in outdoor physical education activities in Birnin Kebbi Local Government Area, Kebbi State
Background of the study
In Birnin Kebbi Local Government Area, the role of climate and weather conditions in shaping students' partic...
