The broad objective of the study is to examine the effect of oil price fluctuations on exchange rate in Nigeria using annual secondary data from 1980 to 2014. This is imperative because the fluctuation in the pricing of petroleum products in the world market has led to the growth or decline in the economic performance of major oil producing economies of the world. In an attempt to achieve the broad objective of this study, an ordinary least square (OLS) econometric technique was adopted to capture the relationship between oil price and exchange rate. The data for the analysis of the model were collected from secondary sources to include the Central Bank of Nigeria (CBN) Statistical Bulletin and National Bureau of Statistics. The result of the model formulated for the study was facilitated using the Econometric View (E-View). From the result of analysis at 5% level of significance, the study established that oil price fluctuation has a significant positive effect on exchange rate in Nigeria. It was also established that consumer price index trade balance and foreign reserve do not show any significant effect on exchange rate in Nigeria.
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study
1.2 Statement of the Problem
1.3 Objectives of the Study
1.4 Research Questions
1.5 Justification of the Study
1.6 Sources of Data and Methodology
1.7 Scope and Plan of the Study
CHAPTER TWO – LITERATURE REVIEW
2.1 Conceptual Review
2.1.1 Oil price
2.1.1 The Concept of Exchange Rate
2.1.2 Determination of Exchange Rate
2.2 Theoretical Review
2.2.1 The Purchasing Power Parity Theory of Exchange Rate
2.2.2 The Traditional Flow Model
2.3 Empirical Review
2.3.1 Evidence from Developed Counties
2.3.2 Evidence from Developing Counties
2.3.3 Evidence from Nigeria
CHAPTER THREE: METHODOLOGY
3.1 Sources of Data
3.2 Model Specification
3.3 A priori Expectation
3.4 Re-statement of Hypothesis
3.5 Methods of Analysis.
3.6 Decision Criteria
CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA
4.1 Data Presentation
4.2 Presentation of Regression Result.
4.3. Interpretation of Result
4.4 Implication of Findings
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary
5.2 Conclusion
5.3 Recommendations
REFERENCES
APPENDIX
