📄 Abstract
This study was centered on the impact of Naira/United States Dollar exchange rate on economic growth in Nigeria from the point of uninterrupted democratic governance- 1999 to 2025 with the nominal gross domestic product as an indicator of economic growth. The study was underpinned by using the Mundell-Fleming Model, Purchasing Power Parity Theory and Endogenous Growth Theory. The research design applied was an ex post facto type of research and the philosophy of the research was positivism, while research data was secondary data obtained once a year from official research data sources. The methods that were adopted included graphical presentation, descriptive statistics, Augmented Dickey-Fuller unit root test, Autoregressive Conditional Heteroscedasticity model (ARCH) and Generalized Autoregressive Conditional Heteroscedasticity model (GARCH). Hypotheses were tested at 5 per cent significant level. The results of the unit root tests showed that the nominal gross domestic product, and the exchange rate were integrated of order one. The results of the Autoregressive Conditional Heteroscedasticity are significant and hence indicated the presence of significant conditional volatility, the results of the Generalized ARCH are also significant showing the presence of significant volatility clustering and persistence with the combined persistence coefficient of 0.872951. The result of the Naira/United States Dollar exchange rate and the Nominal gross domestic product indicated that there was a positive and significant relationship with probability value = 0.0000 which is less than the critical value of 0.05, therefore, the null hypothesis was rejected. The study concluded that exchange-rate shocks were significant for both the nominal economic performance and were supported over time, but that the positive relationship did not necessarily indicate a positive real economic performance. Based on the findings of this study, the Central Bank of Nigeria (CBN) was recommended to introduce the rule based foreign-exchange intervention policy to help regulate the excessive fluctuation of foreign exchange rate.
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📚 How to Cite:
ETOK-AKPAN, Kingsley Rowland, OKOISAMA, Thomas Chinye , EXCHANGE RATE VOLATILITY AND ECONOMIC GROWTH IN NIGERIA , Volume 13 , Issue 8, August 2026, EPRA International Journal of Economics, Business and Management Studies (EBMS) , Pages: 299 - 308 , DOI: https://doi.org/10.36713/epra31318