THE IMPACT OF NAIRA EXCHANGE RATE FLUCTUATIONS ON NIGERIA'S ECONOMIC GROWTH

This study investigates the effect of Nigeria’s currency exchange rate on the country’s economic growth, with a focus on the period from 2006 to 2016. Specifically, it examines the extent to which the Naira exchange rate influences both economic growth and inflation. Using the Ordinary Least Squares (OLS) technique to construct regression models, the study tests the stated hypotheses. Findings reveal that fluctuations in the Naira exchange rate have no significant impact on Nigeria’s economic growth but exert a significant influence on inflation. Based on these results, the study recommends strengthening Nigeria’s export base and promoting local manufacturing to ensure a more sustainable and positive impact of currency movements on the broader economy.