FOREIGN EXCHANGE MANAGEMENTAND SUSTAINABILITY OF MICRO, SMALL, AND MEDIUM ENTERPRISES IN NIGERIA

Abstract

This paper interrogated foreign exchange management and sustainability of Micro, Small, and Medium Enterprises in Nigeria. The small business sector in Nigeria has been characterized by high mortality within its first five years of existence, and this situation provided the motivation for the analysis in this paper. The literature for the study was reviewed from both conceptual and theoretical standpoints. The methodology for the paper was content analysis that relied on secondary sources of materials in the analysis of information for the paper. The theoretical framework for the study is the Purchasing Power Parity (PPP) theory. The paper argued that while foreign exchange management continues to suffocate small and medium enterprises, appropriate, deliberate and consistent policy frameworks from the government will go a long way to arrest the situation. The paper recommended that the government should fashion out deliberate and comprehensive policies that will encourage the manufacturing sector in order to reduce import dependence, revive the nation’s industrial sector, stimulate economic growth and help the country to leverage on its God given comparative advantage among the comity of nations.