ABSTRACT

This is a research focused on “The impact of external reserves management on economic development in Nigeria from 1985-2014.’’ Based on the problem identified as whether both the supply of foreign exchange specifically, export including capital inflows and the persistent increased demand for foreign exchange which uses various external reserves positions to import have exerted any significant positive impact on prolonged low standard of living for an average Nigerian and on the declining real sector production specifically, in agriculture and manufacturing sectors in Nigeria over the period under review. This research sought to examine the relationship that exist among the demand for foreign exchange, supply for foreign exchange, external reserves position, export, import and capacity utilization rate, manufacturing output and real gross domestic product in the study. The relevant literature were reviewed and the research methods were mainly descriptive and analytical using simple percentage index, three multiple regression and correlation models of Ordinary Least Square (OLS), computed with E-view statistical applications. The overall results of this study shown that, the supply and demand of foreign exchange including external reserves position have significant positive relationship on real Gross Domestic Product, manufacturing output exception of capacity utilization rate. Individually, the demand for foreign exchange including external reserves positions showed most significant positive influence on manufacturing output and real gross domestic product while supply of foreign exchange which includes export has insignificant negative influence on all these parameters for economic development. Therefore recommend to include the framework of governance for multiple real investment demand for foreign exchange of external reserves management operation in Nigeria. In conclusion, this study has proven that, Central Bank of Nigeria is working efficiently to improve these situations of external reserves management and economy.

TABLE OF CONTENTS

Title Page        -           -           -           -           -           -           -           -           i

Declaration      -           -           -           -           -           -           -           -           ii

Certification    -           -           -           -           -           -           -           -           iii        

Dedication      -           -           -           -           -           -           -           -           iv        

Acknowledgement         -           -           -           -           -           -           -           v-vii    

Abstract      -           -           -           -           -           -           -           -           viii

Table of Contents -           -           -           -           -           -           -           ix-xii

List of Tables  -           -           -           -           -           -           -           -           xiii      

CHAPTER ONE

1.0     Introduction         -       -        -        -        -        -        -        1

1.1     Background of Study     -        -        -        -        -        1-3   

1.2     Statement of the Research Problem  -        -        -        4-5   

1.3     The Objectives of the Study    -        -        -        -        5

1.4     Significance of the Study         -        -        -        -        -        6       

1.5     Research Questions       -        -        -        -        -        7       

1.6     Research Hypothesis     -        -        -        -        -        8-9   

1.7     Scope and Limitations of the Study  -        -        -        9

1.8     Organization of Study   -        -        -        -        -        10

1.9     Definition of key term as used in the Study         -        -        10-12

CHAPTER TWO

2.0               Review of Related Literature  -        -        -        -        13

2.1     Introduction        -        -        -        -        -        -        13

2.2.0    Conceptual Review        -        -        -        -        -        13     

2.2.1   Concepts of External Reserves Management in Nigeria                        13-15

2.2.2   Sources of External Reserves in Nigeria    -        -        15-16

2.2.3    Composition of External Reserves in Nigeria      -        16-17

2.2.4  Monetization and Ownership Structure of Nigerian     

External Reserves                  -        -        -        -        -        17-19

2.2.5    Organizational and Decision Making Structure    -        19-20

2.2.6    Process of External Reserves Management -        -        20-21

2.2.7    Measures of External Reserves         -        -        -        -        21-24

2.2.8  Uses of External Reserves       -        -        -        -        24-25

2.2.9  The Foreign Exchange Market -        -        -        -        25-26

2.3      Theoretical Framework -        -        -        -        -        26-27

2.4      Empirical Review         -        -        -        -        -        28-30

2.5      Challenges and issues of External Reserves

Management in Nigeria  -        -        -        -        -        30-32

2.6      Structure of Economy in Nigeria     -        -        -        32-33

CHAPTER THREE

3.0      Research Methodology -        -        -        -        -        34

3.1      Introduction        -        -        -        -        -        -        34     

3.2      Research Design  -        -        -        -        -        -        34     

3.3      Research Area     -        -        -        -        -        -        34

3.4      Sources and type of Data       -        -        -        -        35

3.5      Model Specification      -        -        -        -        -        35-36

3.6      Data Treatment Technique     -        -        -        -        36-37

CHAPTER FOUR

4.0        Data Presentation and Analysis   -           -           -           -           38

4.1.0     Introduction             -           -           -           -           -           -           38

4.1.1   Data Presentation         -        -        -        -        -        -        38-42

4.2      Data Analysis     -        -        -        -        -        -        42-49

4.3      Test of Hypothesis       -        -        -        -        -        49     

4.3.1   Hypothesis One -        -        -        -        -        -        50     

4.3.2   Summary of Result       -        -        -        -        -        50

4.3.3   Interpretation of Result          -        -        -        -        -        50-52

4.3.4   Hypothesis Two -        -        -        -        -        -        52

4.3.5   Summary of Result       -        -        -        -        -        52

4.3.6   Interpretation of Result          -        -        -        -        -        52-54

4.3.7   Hypothesis Three                   -        -        -        -        -        54     

4.3.8   Summary of the Result -        -        -        -        -        55

4.3.9   Interpretation of the Result    -        -        -        -        55-57

4.4      Discussion of Findings -        -        -        -        -        57-58

CHAPTER FIVE

5.0      Summary, Recommendation and Conclusion     -        59

5.1      Summary   -        -        -        -        -        -        -        59-61

5.2      Recommendations        -        -        -        -        -        61

5.3      Conclusion          -        -        -        -        -        -        -        61-63

Bibliography       -        -        -        -        -        -        64-68

Appendixes