International Journal for Tourism and Technology (IJTT)
This study determined the currency prices on economic performance in Nigeria from 1981 to 2023. The researchers made used of the ex post facto research design. The data used in this study were gathered from secondary sources based on data available in the Central Bank of Nigerian (CBN) Statistical Bulletin and macrotrend website form (1981-2023). This study adopted descriptive statistics, unit root, bounds cointegration tests, Auto-regressive Distributed Lag Models (ARDL) model and Heteroskedasticity Diagnostic Test such as Breusch-Pagan-Godfre Heteroskedasticity test, Harvey Heteroskedasticity Test and Heteroskedasticity Test: Glejser. The findings from the study revealed that there is an insignificant effect of exchange rate on gross domestic product in Nigeria for both short run and long run, there is a significant effect of interest rate on gross domestic product in Nigeria for short run but there an insignificant effect of interest rate on gross domestic product in Nigeria for long run, there is a significant effect of inflation rate on gross domestic product in Nigeria for short run but there an insignificant effect of inflation rate on gross domestic product in Nigeria for long run, there is an insignificant effect of oil price on gross domestic product in Nigeria for both short run and long run, and there is a significant effect of foreign direct investment on gross domestic product in Nigeria for both short run and long run. The study concluded that there is a significant effect of currency prices on economic performance in Nigeria when planning for short run activities but there is an insignificant effect of currency prices on economic performance in Nigeria when planning for long run activities. It was suggested amongst others that Nigerian government should endeavour to stabilize the exchange rate of Naira in order to increase economic growth because when exchange fluctuate at any given time, it affect gross domestic product insignificantly.
Currency prices and economic performance in Nigeria has posed a topical issue in the field of
study, which has triggered this research. Currency prices generally speaking is the country exchange rate, interest rate, inflation, oil price and foreign direct investment in comparison to other countries and how this affect real gross domestic product of our dear nation Nigeria. A country's currency value may also be set by the country's government. In Nigeria, the currency prices policy has undergone significant transformation from the immediate post-independence period when the country maintained a fixed parity with the British pound, through the oil boom of the 1970s, to the floating of the currency in 1986, following the near collapse of the economy between 1982 and 1985 (David & Oluseyi, 2017; Ehinmowo et al., 2017; Berhe & Gebrehiwot, 2020; Ogochukwu et al., 2024; Tonye & Ogwu, 2024). Odhiambo (2021) stated that a nation experiencing balance of payment deficit has to adopt both short- and long-term measures to correct the disequilibrium, and one of the measures is to devalue the nation’s currency relative to another currency, group of currencies or standard. According to Tonye
and Ogwu (2024), governments of different countries devalue their currencies only when they have no other way to correct the economic problem.
Exchange rate, Interest rate, Inflation Rate, Oil Price, Foreign Direct Investment