Abstract

Author:
Abang Samuel Oweh, Udo Saviour Sebastian, Augustine Okon Jacob

Doi: 10.26480/mbmj.01.2025.10.19

This is an open access article distributed under the Creative Commons Attribution License CC BY 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Because of its firm reliance on oil exports, Nigeria, a major oil-producing nation, has seen considerable economic volatility. The exchange rates and the volatility of oil prices significantly impact the country’s macroeconomic stability, growth, and development. Nigeria’s economy mainly depends on oil exports, which provide 70% of government revenue and more than 90% of foreign exchange revenues. On the other hand, because of shifts in monetary policy, capital flows, and oil prices, the Nigerian Naira (NGN) has seen considerable volatility against major currencies, especially the US Dollar (USD). As a result, the GDP grew at erratic rates, impacted by changes in the price of oil, ranging from -1.6% in 2016 to 3.1% in 2022 (CBN, 2023). The main subject of this study is the relationship between Nigeria’s GDP growth, exchange rates, and oil price volatility. In particular, the contribution of currency rate and oil price volatility to the engineering and maintenance of Nigeria’s economic growth was investigated. The study also looks at how the exchange rate affects Nigeria’s economic development and how the volatility of the oil price affects that growth. The period of 40 years (1984–2023) was chosen for empirical investigation. The information was gathered from the Nigeria Bureau of Statistics (NBS; 2023), journals, the Central Bank of Nigeria Statistical Bulletin (CBN; 2023), and World Bank statistics. These data sources are thought to be highly trustworthy and dependable.