IMPACT OF EXCHANGE RATE POLICY ON NON-EXPORTS IN THE NIGERIAN ECONOMY
ABSTRACT
The decline of non-oil exports has had adverse effect on the economy. Since 1986, the federal government has formulated policies to enhance non-oil exports, put in place incentives and institutional support framework effective implementation. This paper examines these policies to investigate the extent to which the exchange rate can boost non-oil exports especially agricultural, manufactured and mining exports. This paper is derived from the recognition that the country’s current economic predicament is partly a product of her over reliance on the oil sector for foreign exchange earnings. Hence, if non-oil exports can be expanded, it would no doubt cushion the economy against the undesirable effects of instability in the world market. Nigeria should draw closer to other countries in the region with a view of encouraging intra-African trade. In addition, commodity agreement should be vigorously pursued and commodity exchange utilized to manage the price risks inherent in trading. Finally, improvement in non-oil production and export will occur only if there is consistency and continuity of policies as well as political stability. It is on this note that this project was written.
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