THE DETERMINANTS OF BALANCE OF PAYMENT PERFORMANCE IN NIGERIA

he study employs yearly data from 1980 to 2021 to analyze the Balance of Payments in Nigeria. Its primary objective is to explore the long-term determinants of Nigeria's Balance of Payments. The investigation employs the Autoregressive Distributed Lag Model (ARDL). The long-run ARDL regression findings indicate a negative exchange rate effect, while the short-run results show a positive value. Furthermore, the coefficients for FDI, GDP growth, interest rates, and crude oil prices are all positive and statistically significant. The research suggests a compelling case for government intervention to stimulate economic productivity. To foster economic growth, capital investment and expenditure are crucial. The government should entice foreign investment by providing incentives to potential foreign investors. Additionally, the government should enhance security and establish a sense of belonging in the Niger Delta to promote peace and ease of operations in the oil industry.