NAIRA EXCHANGE RATE, DEPRECIATION AND DOMESTIC INFLATION IN NIGERIA

ABSTRACT
 The research work critically examined the extent to which naira exchange rate depreciation has affected domestic inflationary rate in Nigeria between the year 2000-2013. Therefore, in this study the researcher examined the trend of inflation and exchange and the relationship between the two variables. A model was specified to show the relationship between both variable. Also interest rate was included in the model as one of the variables that affects inflation. The model was then estimated using multiple regression method and variable statistical test were carried out on the regression equation. The result was analyzed accordingly. Moreover the result of the statistical test shows that exchange rate depreciation of naira is significant in explaining variation in the rate of inflation. Among the findings are that domestic inflation has significant impact on the Nigeria economic growth.  The recommendation is that the federal government should provide a possible solution to reduce inflation in the nation like improving the value and quality of the naira over other foreign currencies like the U.S dollar. In conclusion, the data for the project work was collected from most recent years in order to make findings, adequate in explaining the cause of inflation in recent times.


TABLE OF CONTENTS
Title page                                  i
Certification page                             ii
Approval page                                 iii
Dedication                                 iv
Acknowledgment                              v
Table of contents                              vi
Abstract                                     vii
CHAPTER ONE
INTRODUCTION                             1
1.1 Background of the study                      1
1.2 Statement of Problems                    4
1.3 Significant of the Study                    6
1.4 Objectives of the Study                     7
1.5 Research Hypothesis                         7
1.6 Scope and Limitation of the Study             8
1.7 Definition of Terms                          9
    References
CHAPTER TWO
REVIEW OF RELATED LITERATURE             12
2.1 The Concept of Exchange Rate                  12
2.2 Exchange Rate Management in Nigeria        22
2.3 Inflation a Concept                         31
2.4 Theories of Inflation                         36
2.5 Inflation in Nigeria                          42
2.6 Exchange Rate Depreciation and Inflation
      in Nigeria                                 49
2.7 Empirical Evidence                         52
   Reference 55
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY           
3.1 Research Design                            57
3.2 Theoretical Framework and Model Specification  57
3.3 Data on Macro-Economic Variables                61
3.4 Source of Data                               62
3.5 Population Size                                    66
3.6 Sample Size                                                           66
3.7    Instrument of Data Collection                             68
3.8    Method of Data Presentation                               69
3.9 Techniques of Data Analysis                                  69
References                                                                   71

CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1    Analysis of data                         72
4.3 Test of hypothesis                         81
CHAPTER FIVE
SUMMARY OF FINDINGS,  CONCLUSION
AND RECOMMENDATIONS
5.1 Summary of findings                                          89
5.2 Conclusion                              90
5.3 Recommendations                           93
Bibliography                             95
       Appendix                                                            97
      Questionnaire                                                     98