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This study examined the impact of the net effect of exchange rate on food productivity in Nigeria for the period of 1981-2019. The main objective of this research work is to examine the impact of the net effect of exchange rate on food productivity in Nigeria. The study used Ordinary Least Squares (OLS) to examine the relationship between net effects of exchange rate and food productivity in Nigeria. The study found that the level of exchange rate was found to have a positive impact on food productivity. Also, gross capital formation was also found to have a negative relationship with food productivity. Also, foreign Direct investment was found to have a positive and significant relationship with food productivity. Also, foreign Direct investment was found to have a positive and significant relationship with food productivity. Finally, total tax was found to have a positive impact on food productivity in Nigeria. The study therefore recommends that he government can use a fixed exchange rate system to control the effects of exchange rate fluctuations on the level of food productivity. The government, through its central bank, determines a fixed or pegged rate. As a result, the Nigerian government should buy and sell its own currency against the currency to which it is tied in order to adopt and maintain this exchange rate arrangement. A fixed exchange rate would provide greater pricing stability for imports and exports, as well as protection against currency depreciation. This stability aids a government in maintaining low inflation rates. In addition, in order to maintain exchange rate stability and avoid exchange rate volatility, the government can use either expansionary or contractionary monetary policies as needed, depending on the current exchange rate situation. In a floating exchange rate system, for example, expansionary monetary policy generates an increase in GNP and a depreciation of the local currency in the short term, whereas contractionary monetary policy causes a fall in GNP and an appreciation of the domestic currency in the short run and this would by and large promote food productivity in the country.
