EFFECT OF CENTRAL BANK NIGERIA POLICY ON BANK VERIFICATION NUMBER IN IMPROVING THE BANKING SERVICES IN NIGERIA: A CASE OF KANO STATE
Muhammad Dahiru Ahmad
Volume 2 Issue 2
Abstract
This study examines the effect of exchange rate volatility on selected macroeconomic variables in Nigeria from 1986 to 2018. The model formulated depicts economic growth (EG) as the dependent variable while Exchange Rate (EXR), Balance of Payment (BOP) Oil Revenue (OREV) and inflation (INF) are independent variables. These data were sourced and extracted from CBN Statistical Bulletin. We employ the Johansen Co-integration estimation techniques to test for the short and long runs effect of the variables used. The ADF test reveals that all the variables are stationary. From the parsimonious model, the results show that OREV and EXR are positively related to EG. Further findings reveal that there exist two equations at 5% level in both trace and Max – Eigen statistic. This implies that exchange rate volatility and oil revenue contributes positively to EG in the long run. We recommend that graft should be tackled frontally in the oil sector to ensure better utilization of oil revenue. Also the monetary authorities should pursue policies that would curb inflation and ensure exchange rate stability for a sustainable economic growth in Nigeria. Keywords: Exchange Rate, Macroeconomics, Balance of Payment, Oil Revenue
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