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AN EVALUATION OF THE IMPACT OF CONTINUE DEVALUATION OF NIGERIA CURRENCY ON INDUSTRIAL PERFORMANCE IN NIGERIA (A CASE STUDY OF OKIN BISCUIT NIGERIA LIMITED IJAGBO)

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CHAPTER ONE

INTRODUCTION

  • BACKGROUND OF THE STUDY

The issue of Nigeria exchange role of currency vis–a–vis other international trade currencies especially the American Dollar and British Pound steeling has become other of the day, many Nigeria that is carrying out business especially those that procure material from abroad. In July 1996 the Federal Government of Nigeria introduced structural adjustment programmer (SAP) to correct defect between balance of payment in both national and international trade.

Likewise, on  September 1986, THE Second tier foreign exchange market was introduced the rational for setting up the (SFEM) is based on the need of naira via the interplay of market force in July 1987, Foreign Exchange Market (FEM) took over from SFEM and later it was changed to Authomous Foreign Exchange Market (AFEM)

The inter-bank Foreign Exchange Market (IFEM) was officially introduced on the 25th of October 1999, to replace AFEM (Autonomous Foreign Exchange Market). On July 22, 2001 the Central Bank of Nigeria re–introduced the Auction method of exchange rate this is because the past the method used has been a failure because the realistic exchange rate of naira is yet to be achieved.

However, since the introduction of new exchange rate in 2006, the value of naira or currency to the United State Dollar has edged downward, further, there has been a widening gap between the parallel markets with the rate in the former is always on the increase. As a result of fundamental increase in exchange rate of Nigeria Currency and those of other countries day– in– day out has resulted in Naira Devaluation.

 

1.1    STATEMENT OF THE PROBLEM

It has been that the currency development is one of the economies which in turn affect the activities of company (OKIN BISCUIT NIGERIA LIMITED). In the cause of identifying the evaluation of the impact of continues Devaluation of Nigeria Currency on Industrial Performance bin Nigeria.

A﴿   what is historical background of continue devaluation of Nigeria currency on industrial performance on Nigeria?

B﴿ is there any relevance of continue devaluation of Nigeria Currency option on industrial performance in Nigeria?

C﴿ Would impact of continue devaluation of Nigeria currency improved the image of industrial performance in the eye of the public and increase customers patronage?

 

1.2    OBJECTIVE OF THE STUDY

In consideration of the impact of continue devaluation of Nigeria currency on industrial performance on Nigeria, these are the following objective׃

A﴿ To examine the relevance the origin of continue devaluation of Nigeria currency on industrial performance on Nigeria.

B﴿ To assess the relevance of continues devaluation of Nigeria currency option on industrial performance on Nigeria.

C﴿ To highlight the impact of continue devaluation of Nigeria currency on industrial performance on Nigeria.

D﴿ To examine the possible short coming of continue devaluation of Nigeria currency in industrial performance on Nigeria.

 

1.3    SIGNIFICANT OF THE STUDY

The study is revive of the particularly OKIN BISCUIT MANAGEMENT LIMITED IJAGBO, KWARA STATE. Companies that engage in manufacturing activities will found the result of the study of the study useful in their operations. It will help the market policy in determining the realistic policy exchange rate of the currency to enhance industrial performance. Lastly, this research work would help industry (s) to develop alternatives sources of raw material.

 

 

 

 

CHAPTER TWO

LITERATURE REVIEW

  • WHAT IS DEVALUATION?

The colleen’s business English dictionary by Michael J Wallace on year defines” Devaluation as a lowering of the value of a currency with regard to its use”. Also, according to active study dictionary devaluation is defined as a reduction in the value of a country’s currency in relating to other currencies…

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