EXCHANGE RATE DYNAMIC AND NON-OIL EXPORT IN NIGERIA

The study investigated the impact of exchange rate dynamic on non-oil export in Nigeria from 1986 to 2021. The objectives of the study were to determine the impact of exchange rate volatility on non-oil exports in Nigeria; to estimate the impact of exchange rate on non-oil exports in Nigeria; and to estimate the causality relationship between exchange rate volatility and non-oil exports in Nigeria. The study employed Error Correction Model (ECM) after pre-estimation tests. The study found that a negative relationship between exchange rate volatility and non-oil exports existed in Nigeria, a negative relationship between exchange rate and non-oil exports and a unidirectional causality relationship between exchange rate volatility and non-oil exports in Nigeria. The study recommended that government should pursue revenue diversion policies; ensure exchange rate stability in order to stem inflationary tendencies and prioritize stability in macroeconomic variables by employing sustainable monetary and fiscal polies