IMPACT OF EXCHANGE RATE POLICY ON NON-OIL EXPORTS IN THE NIGERIAN ECONOMY
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IMPACT OF
EXCHANGE RATE POLICY ON NON-OIL 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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