The Impact of Exchange Rate Volatility on Rice Output in Nigeria

Paul Atanda  Orebiyi; Etim Essien  Bassey; Michael Akpan  Udofia; Blessing Friday  Usanga

doi:10.59413/ajocs/v6.i4.6

Authors

Paul Atanda Orebiyi Department of Economics, University of Uyo, Uyo, Nigeria Author
Etim Essien Bassey Department of Economics, University of Calabar Author
Michael Akpan Udofia Department of Economics, University of Uyo, Uyo, Nigeria Author
Blessing Friday Usanga Department of Economics, University of Uyo, Uyo, Nigeria Author

DOI:

https://doi.org/10.59413/ajocs/v6.i4.6

Keywords:

Rice output, Exchange rate, volatility

Abstract

The effect of the volatility of the Nigeria’s exchange rate on the rice output in Nigeria was assessed under the fully modified ordinary least squares estimation method and employing annual time series data from 1980 to 2024. The exchange rate volatility variable was obtained using the general autoregressive conditional heteroskedasticity method (GARCH). The study found rice production to be positively and substantially influenced by the volatility of the Nigeria’s exchange at a five per cent level of significance. The following policy recommendations were made emanating from the findings of the study: adoption of a managed float exchange rate system by the Central Bank of Nigeria; the provision of agricultural extension support to local rice farmers by the federal and state ministry of Agriculture such as encouraging the sustainable use of fertilizer, and investment in arable land expansion for more cultivation of rice, and the promotion the use of technology in rice cultivation and processing.

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