Authors: Eze A. Eze; Tevin-Anyali, Chizoba; Obi, Chinasa Ifeoma; Oladipo Abimbola O. & Oputa, John Edewor

Eze A. Eze: Nnamdi Azikiwe University, Awka. Nigeria.

Tevin-Anyali, Chizoba: Nnamdi Azikiwe University, Awka. Nigeria.

Obi, Chinasa Ifeoma: Nnamdi Azikiwe University, Awka. Nigeria.

Oladipo Abimbola O.: Nnamdi Azikiwe University, Awka. Nigeria.

Oputa, John Edewor: Global Wealth University, Togo, Nigeria.

ABSTRACT

Exchange rate volatility has a substantial impact on the development of Nigeria’s manufacturing sector. As a result, various research has been done to investigate this subject, with a variety of conclusions. Hence, this study examines the impact of exchange rate volatility on manufacturing sector development in Nigeria, collecting data that span from 1999 to 2023. Statistical analysis using Multiple Regression Method was employed, and from the result, exchange rate has positive but insignificant impact on manufacturing output. Access to electricity in a similar vein, has positive but insignificant impact on manufacturing output. Conversely, inflation and total reserves have negative impact on manufacturing output. This reveals that exchange rate helps to stimulate the growth of the manufacturing sector, despite the volatility of the rate. As a result of these findings, the study recommends that government should formulate policy such as fixing the rate of exchange, as this will stabilize the rate of exchange so as to help manufacturing sector’s growth because the sector rely on importation of raw materials for production.

Keywords: Manufacturing sector development, Exchange rate volatility, Economic growth, Nigeria.

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