This study examined the relationship between exchange rate and the Nigerian economy from 1986 to 2016. Secondary data obtained from the Central Bank of Nigeria statistical bulletin and the World Bank database was used. Econometric tools of analysis were employed to estimate the model. The output from the Augmented Dickey Fuller (ADF) unit root test revealed that all variables except inflation rate and interest rate were found to be stationary at first difference. The Johansen Cointegration technique reveals the presence of two and one cointegrating equations respectively indicating the existence of a long-run equilibrium relationship among Gross. The normalized cointegration equation revealed that exchange rate had positive relationship with economic growth (GDP). The slope of EXR (exchange rate) though insignificant is positive. The coefficient of INTR was observed to be negative and insignificant, while INFR was negative and statistically significant. Deriving from empirical findings, the study thus concludes that exchange rate has a positive long run relationship with economic growth. Based on the foregoing findings, the study has favoured the implementation of the following recommendations: government should encourage export promotion strategies in order to maintain a surplus balance of trade, conducive environment, adequate security, effective fiscal and monetary policies, as well as infrastructural facilities be provided so that foreign investors will be attracted to invest in Nigeria. The apex bank (Central Bank of Nigeria) should design and develop strategies that will stem the tide of rising inflation in the economy as persistent rise in prices has the tendency of adversely affecting consumers' purchasing power. Finally, monetary policy measures to reduce the present high interest rate adopted for borrowers should be initiated as fast as possible. It is only an affordable interest rate (cost of borrowing) that can motivate would-be investors to borrow and invest for the growth of the national economy.
<p><em>The main objective of this study is to empirically examine the impact of Power Sector Reform on Manufacturing and Services Sector in Nigeria between 1999-2016. The study employed secondary annual time series data sourced from World Bank database (2016). The methodology adopted for the study was Augmented Dickey-Fuller (ADF); a test for long-run relationship using ARDL Bounds Testing approach with analysis of long-run and short-run dynamics in the model. A striking revelation from the study is the inverse relationship that exists between manufacturing output and electricity consumption in Nigeria within the period referenced. </em><em>This negative relationship is not unconnected with widespread allegation of misappropriation of budgeted funds for the Power Sector by successive administrations in Nigeria since 1999. It must be stated in clear terms that constant and consistent electricity generation, transmission and distribution is sine-qua-none for the growth of the national economy. Virtually all sectors of the economy depend on the supply of electricity to do business and so the lack of this vital ingredient of growth contributes in no small measure in stagnating economic growth and development. Efforts at reforming the power sector can only be fruitful when ALL stakeholders in the power sector including the political class put away their personal agendas and take the bull by the horn towards rescuing the nation from the looming danger of stagnant economic growth. Furthermore, </em><em>there is the need for the Nigerian government to come up with new, better and alternative ways of improving energy generation and supply, as well as proper maintenance of electricity infrastructure in the country.</em></p>
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