Impact of Exchange Rate on Non-Oil Exports in Nigeria

This research examined the impact of exchange rate on non-oil exports in Nigeria between 1980 and 2018 using the Autoregressive distributed lag model (ARDL). The results revealed that there exists no long run relationship between exchange rate and non-oil exports in Nigeria. It also revealed that exchange rate has a negative and insignificant relationship with Non-Oil sector under the evaluation period, trade Openness from the result has a positive and insignificant relationship with Non-oil exports, credits to the private sector has a positive and significant relationship with Non-oil exports, GDP from the result has a positive and significant relationship with non oil export and inflation rate has a positive and insignificant relationship with non oil export under the evaluation period. The study recommended that the monetary authority should ensure exchange rate stability in order to stem inflationary tendencies in Nigeria which have adverse effect on the growth of non-oil export and the government should encourage stability in macroeconomic environment and employ growth oriented and stabilization policies especially at macro level which will help the country gain from trade with the advanced countries, induce the diversification, as well as the growth and development of Nigerian economy.