Exchange Rate Volatility and Export of Agricultural Produce in Nigeria

This study examined the effect of exchange rate variation on the export of agricultural produce in Nigeria. The specific objectives of the study include; examining the effects of exchange rate variation; Trade openness; Agricultural financing; and Agricultural employment on the export of agricultural produce in Nigeria. This study adopted the VAR estimation technique in ascertaining the nexus between exchange rate variation and the export of agricultural produce in Nigeria. Data for this study were sourced from World Development Indicators, WDI, a publication of the World Bank; Central Bank of Nigeria, CBN, Statistical Bulletin and Annual Reports for the various years; and the National Bureau of Statistics. The data covered a period of 35 years 1986 – 2021. The analysis began with a descriptive statistic, unit root test and a co-integration test to ascertain the suitability of the data that entered the model. Thereafter, the VAR estimation technique used in estimating the model for this study. The variables of the model include: AGRXPT, EXRV, TOPEN, AGRFIN and AGREMP. The results show that EXRV, TOPEN, AGRFIN and AGREMP exert a positive effect on AGRXPT. The study therefore concludes that EXRV, TOPEN, AGRFIN and AGREMP play a vital role in enhancing the export of agricultural produce in Nigeria. Based on that, the study recommends increased domestic production of agricultural produce, implementation of export oriented policies that will engender increased foreign exchange