Exchange rate fluctuation is of great concern in Nigeria due to its significant adverse impacts on Nigeria’s economic growth, standard of living, and overall economic stability. The volatility of the Naira directly affects key economic indicators such as inflation, import costs, and investment decisions. The root causes of exchange rate fluctuation in the country are primarily structural economic issues and external shocks, most notably the nation’s heavy dependence on crude oil exports and high reliance on imports, among others.
Specifically, exchange rate fluctuation has a significant and largely negative impact on agricultural production, while presenting mixed effects on exports (IMF, 2021).

Based on NISER study data, this policy brief examines how exchange rate fluctuation patterns affect agricultural output and exports.