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Abstract
This study examined the impact of exchange rate volatility on exports in Nigeria. Annual time series data for the period 1981 to 2022 was employed in the analysis. The secondary data was extracted from Central Bank of Nigeria Statistical Publications, National Bureau of Statistics and Macrotrends. In line with the objectives, three models were constructed: total exports, non-oil export and oil export. In analyzing the data, the ARCH model was used to generate the volatility series of exchange rates. Augmented Dicky-Fuller technique was used to test the unit root property of the series. The Granger causality test for causation was conducted and the Ordinary Least Squares was used to estimate the coefficients of the equations. The results of the unit root test showed that all the variables under study are stationary at first difference, granger causality showed that there is no causation between total exports, non-oil export, oil export and exchange rate volatility in Nigeria. The findings revealed that exchange rate volatility had a negative and insignificant impact on total exports as well as on non-oil and oil exports. Based on these results, the study recommended that the Nigerian government should implement policies that will encourage diversification of Nigeria's export base beyond oil. The government should also promote investments in technology and infrastructure to improve production efficiency across export sectors.
