H. E. Oaikhenan

The study analysed the impact of currency devaluation on economic growth in Nigeria, using secondary data sourced from Central Bank of Nigeria (CBN) Statistical Bulletins, World Bank and the International Monetary Fund (IMF). The data covered a period from 1981-2021. Auto-regressive distributed lag model (ARDL) and multiple regressions analysis were employed to examine the relationship between the dependent variable (GDP) and independent variables (Exchange rate, inflation rate, foreign direct investment and Investment). Findings reveals that GDP has a negative relationship with inflation rate, FDI, GFCF and a positive relationship with exchange rate. In conclusion, currency devaluation has significant and statistical impact on economic growth in Nigeria. This study recommends that government should employ the use of managed exchange rate system to enhance competitiveness without causing excessive depreciation since currency devaluation positively influences economic growth.