ABSTRACT

One ofthe critical challenges in the Nigeria’s economic developmentprocess in the past decades has been the effects oftrade and exchange rate policies on economic growth in Nigeria. The study therefore investigates the effects oftrade and exchange rate policies on economic growth in Nigeria. This is carried out using a simple econometric method of analysis (multiple regression analysis) with secondary data from 1981 to 2017 and were from World Bank and CBN publications. Following the findings of this study, is can be seen that total trade has significant positive effect on economic growth in Nigeria. Results also suggests that appreciation ofexchange rate has significant positive effect on economic growth in Nigeria. Economic growth and development with their attendant benefits would be very hard to achieve ifresidents ofan economy could not buy some goods and services from abroad and most importantly, export goods and services to generate revenue to pay for the imports. The study recommends that government should adopt more policies on trade liberalization like reducing non-tariffbarriers, reducing tariffs, reducing or eliminating quotas that will enable the economy to grow at spectacular rates as well as adopt long term policies because in the long term, a strong currency depends on economicfundamentals