Revista de Economía y Negocios

The Implication of Naira Devaluation to the Nigeria’s Economic Development

Abstract

Udo Emmanuel Samuel, Ben Etim Udo and Kingsley Idogen Imolemen

The fundamental intent of the study is to estimate the implication and affiliation flanked by economic development and Naira devaluation in Nigeria. The above intent shoot from assessing whether there are a significant affiliation and impact from devaluation to economic development proxied by (GDP). Which therefore forms the central argument of the study. The study by means of Classical Linear Regression Model (CLRM) adopts secondary data from 2000 to 2015. The Ordinary Least Square technique signifies the prime technique in relation to an array of other universal/ customary and analytical test. The R2 explains that 92% of the variation in GDP in the model study is explained by the principal regressors. Exchange and the inflation rate were sustained to have a positive and significant affiliation with GDP while, external debt, and public investment was negative and non-significant. The study established that devaluation is not peculiarly Nigerian. The results bare that devaluation does more harm than good within the Nigerian context since the needed prerequisite to ensure gains from devaluation are not present in the system.