CRUDE OIL PRICE AND EXCHANGE RATE FLUCTUATIONS IN NIGERIA 2021 – 2023
Keywords:
Crude oil, exchange rate, price, fluctuations, earnings, supply and NigeriaAbstract
The paper examined the effect of crude oil price on exchange rate fluctuations in Nigeria from 2021 to 2023. The secondary data used for the study were sourced from central bank statistical bulletin monthly data on crude oil prices, official exchange rates, foreign exchange earnings and foreign exchange supply from the year 2021 to 2023 were used for the analysis. The data was analyzed with ordinary least square regression (OLS) with E-view statistical software version 9.5. the results show that Crude oil prices has a significant negative relationship with exchange rate fluctuations in Nigeria, foreign exchange supply has a significant negative relationship with exchange rate fluctuations in Nigeria while foreign exchange earnings has a significant positive relationship with exchange rate fluctuations in Nigeria. we concluded that crude oil price, foreign exchange supply and foreign exchange earnings are major determinants of exchange rate fluctuation in Nigeria. The study recommends that Government should increase crude oil production to increase her earnings, government must take stringent measure against corrupt officers of CBN who illegally divert forex to the parallel market and to lessen huge dependent on oil and channel investments on gas and non-oil sectors.
