Exchange Rate Regimes and Real Sector Performance in Nigeria: A Disaggregated Approach

ors and that a long term relationship exists between exchange rate and the real sector output in Nigeria. The results also establish existence of a clear evidence of differential impact of exchange rate regimes on the dynamics of outputs of the five disaggregated real sectors in Nigeria. The study therefore recommends that the monetary authorities should re-appraise the existing exchange rate policies in Nigeria with the intention of strengthening the controls and interventions to make them more effective and impact positively on the real sector of the economy. The government should also design and develop a broad programme of stimulating domestic productions to increase exports, eliminate non-productive imports and create employment. There is also the need to put in place and implement proactive and harmonized macroeconomic policies that would attract foreign private investment, increase foreign exchange earnings, stimulate exchange rate stability, reduce poverty level and spur overall economic development .