By: Naziru Yusuf Abdullahi, Rabiat Abubakar Abdulkadir
Pages: 537–554, Volume: 3, Number: 1
Published by: AEFUNAI Journal of Economics, Finance and Development Studies, Alex Ekwueme Federal University, Ndufu-Alike, 2/1/2026, 2026
ISSN (Electronic): 2536-6742
DOI:
Assessing the Impact of Exchange Rate Fluctuation on Export Performance in Nigeria
Abstract:
This study investigates the impact of exchange rate fluctuations on export performance in Nigeria. The primary objective is to analyze how the exchange rate, crude oil prices, and interest rate influence terms of trade in shaping Nigeria’s economic performance. The study employs Vector Error Correction Model (VECM) to examine the relationship between the variables After confirming the order of integration among the variables which shows I(1) process, the study confirms a long-run, negative, and significant impact of exchange rate depreciation on Nigeria’s terms of trade, driven by the country’s dependence on imports of capital goods and refined petroleum. Conversely, higher oil prices improve the terms of trade. The study suggests a stable exchange rate policy to protect the competitiveness of non-oil exports.
Keywords: Exchange rate, Export performance, Competitiveness, Trade balance
How to Cite
Abdullahi, N. Y., & Abdulkadir, R. A. (2026). Assessing the Impact of Exchange Rate Fluctuation on Export Performance in Nigeria. AEFUNAI Journal of Economics, Finance and Development Studies (AEFUNAI-JEFDS), Vol. 3(1), 537–554.
Creative Commons Attribution 4.0 International License (CC BY 4.0)
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