Effect of the Fall of International Oil Price on Exchange Rate in Nigeria

Effect of the Fall of International Oil Price on Exchange Rate in Nigeria

ABSTRACT

This study examines the effect of the fall of international oil price on Nigeria exchange rate within the period of 1981-2018. The study adopted ex post facto research design. The study makes use of secondary data and the data were drive from a higher-quality database which has been subjected to series of tests before being published. The data is annualized time series data which cover from the period of 1981 – 2018. Multiple regression analysis was used to analyzes the data and it is based on the classical linear regression model, which can be called Ordinary Least Square (OLS) technique. The result reveal that, international crude oil price fall always have negative and significant effect on exchange rate in Nigeria economy and there are negative and significant responses between exchange rate and international crude oil price fall in Nigerian economy.

Keywords: Real Exchange Rate; Crude Oil Price; International Oil Price; Nigeria Economy

Authorship
Obinuba, Chinwe Blessing PhD1; Mbah, Chris Chukwuemeka PhD.2; and Oparah, Promise Chika, PhD3

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