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ABSTRACT
In literature, it is believed that exchange rate devaluation can engender higher export earnings. As part of the reforms under SAP, the Nigerian government deregulated the Foreign exchange market subjecting the naira exchange rate to market imperatives. The exchange rate since the 80’s has experienced severe fluctuations. This study simply investigated if the consistent depreciation of the naira has engendered high exports receipt. To this end, annual time series data for the period 1980-2019 were obtained from the 2019 CBN statistical bulletin. The stationarity state of the variables was examined using the Augmented Dickey Fuller approach while long-run relationship was examined conducting the Johansen Co-integration test. The estimated ECM reveals that the naira exchange rate both positively and significantly impact on Non-oil exports. In other words, naira depreciation will significantly expand Nigeria’s Non-oil exports receipt. Interest rate was shown to have a negative but significant impact on Non-oil exports receipt. Openness of the economy produces adverse effect on Non-oil exports. Both manufacturing output and inflation rate do not significantly impact on Non-oil exports. Among other things, the study recommends that efforts should be made to diversify the productive base of the nation by shifting into the production of intermediate manufactured goods. Policies should be articulated that enhance the performance of the manufacturing sector. There should be timing and sequencing of the openness of the economy.
