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

The fundamental intend of the study is to estimate the implication and relationship between economic development (RGDP) and currency devaluation in Nigeria. The above intent was achieved through a review of related literatures. The central augment of the study based on devaluation and whether its improve or worsen the economic climate as debated over time with varying empirical evidences in developed and developing economies. Data for analysis were extracted from the Central Bank of Nigeria Statistical Bulletin of and publications of the National Bureau of Statistics period of 2003 to 2019. Adopting ordinary least square (OLS) technique since data are not stationary, unit root test was equally employed. The study established that devaluation is not peculiarly Nigerian, however the findings revealed that it does more harm than good as far as Nigeria is concerned since the needed requirement to ensure the nation gain from devaluation are not present in the system. Exchange rate, import, export and interest rates were used as proxies for currency devaluation; while real GDP was used to measure growth. Conclusion is that devaluation benefits exporting economies. For an economy that is structured like Nigeria’s, devaluation will surely complicate the problem at hand, rather than solving it, since it’s highly import dependent.