EFFECT OF MACROECONOMIC RISKS ON NIGERIAN MANUFACTURING SECTOR USING ANNUAL DATA FROM 1986 - 2023

This study investigated the effect of macroeconomic risks on the Nigerian manufacturing sector using annual data from 1986 to 2023. The specific objectives of the study were to: examine the effect of inflation risk on the Nigerian manufacturing sector; evaluate the effect of exchange rate risk on the Nigerian manufacturing sector; ascertain the effect of interest rate risk on the Nigerian manufacturing sector; investigate the effect of unemployment rate risk on the Nigerian manufacturing sector. The study was a secondary type that adopted an ex-post facto research design. The Auto Regressive Distributed Lag (ARDL) method was adopted using a multiple regression model of data analysis. It was discovered that exchange rate and interest rate risks had a significant effect on the Nigerian manufacturing sector. While inflation rate risk and unemployment rate risks had no significant effect on the Nigerian manufacturing sector. It was concluded that the selected macroeconomic variables jointly had a significant effect on the Nigerian manufacturing sectors. It was recommended that the government should come up with policies that will enhance price control, control of money supply, and increase productivity to stem the tide of inflation, interest rate, and exchange rate risks in Nigeria. The government should also create more job opportunities to reduce the rate of unemployment in Nigeria.