Effect of Exchange Rate Depreciation On Non-Oil Export in Nigeria

This study seeks to find the effect of exchange rate depreciation on non-oil export in Nigeria between 1975 and 2021. In achieving the specific objectives, that is to determine the effect of trade openness on non-oil export in Nigeria; to ascertain the effect of interest rate on non-oil export in Nigeria; to determine the effect of exchange rate depreciation on non-oil export in Nigeria, Ordinary Least Square and Error Correction Model (ECM) was adopted. The study found among other things that there is significant long run relationship between exchange rate depreciation and non-oil exports in Nigeria for the period under study. It was also found that developments in exchange rates significantly affect non-oil exports in Nigeria and that there is a significant causality which runs from exchange rate to non-oil exports in Nigeria. The policy implication of this study is that monetary authority should ensure exchange rate stability to avoid adverse effect on the growth of non-oil export. The study concludes that there is positive effect of exchange rate depreciation on non-oil export. Based on this; The study recommends among other things that having seen that developments in exchange rates has significantly effect on non -oil exports, government should encourage stability in macroeconomic variables (exchange rate inclusive), and employ such growth oriented and stabilization policies especially at macro level which will promote non-oil exports and in order to encourage non-oil activities so as to increase production