Effect of Sectoral Foreign Exchange Utilization on Manufacturing Firms Performance in Nigeria
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Abstract
This research investigates the analysis of sectoral foreign exchange utilization on manufacturing firm’s performance in Nigeria from 1997-2023. Utilizing ex-post facto research design, the study collected secondary annual time series data from the CBN statistical bulletin. The study further used the descriptive statistics, correlation matrix, and OLS regression analysis, the study examines the relationship between the aggregate manufacturing sector output (dependent variable) and the utilization of foreign exchange in the Industrial, Agricultural, Transport, and Oil and Gas sectors (independent variables). The findings reveal that Industrial sector utilization has a positive but insignificant effect, Agricultural sector utilization has a positive and significant impact, Transport sector utilization exhibits a negative and significant effect, while Oil and Gas sector utilization shows a positive but insignificant effect on the aggregate manufacturing sector output in Nigeria. These results provide valuable insights into the nuanced relationships between sectoral foreign exchange utilization and manufacturing performance, offering a basis for informed decision-making and potential policy recommendations. Recommendations include refining strategies for industrial sector foreign exchange utilization, supporting efficient agricultural utilization, implementing targeted interventions for the transport sector, and cautious assessment of policies in the Oil and Gas sector to optimize positive impacts without adversely affecting manufacturing.
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Copyright (c) 2024 Oweibo, Onoriode Carolyn (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.
Prof. Sunday, M. Aguwamba, Igbinedion University, Okada, Edo State, Nigeria.
Department of Banking and Finance,
Igbinedion University, Okada, Edo State, Nigeria.
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