effects of exchange rate fluctuations on smes organisational performance in nigeria

Here is Your Sample Download Sample 📩

1.1 Research background

This research will describe the fluctuating price of essential commodities in Nigeria. The financial stability of this country faces various issues for the rate fluctuation of commodities. It influences the performances and activities of medium and small enterprises of Nigeria for the concern of the GDP and survival rate of commodities. This research mainly explains the exchange rate of essential things in Nigeria. A policy was adopted in 1986 in Nigeria to solve the problem of rate fluctuation (Odunukan et al., 2022). The economic performance of the country will be elucidated in this assignment in detail. A stable rate is necessary for all countries to improve their economy. The rising exchange rate in Nigeria impacts the supply of products and market forces in the country. It can influence the demand of the public in the country. The exchange rate mainly examines the rate of currency and it can impact the economy of a country. Nigeria wants to control the fluctuation rate in the country which can influence the GDP. Currencies can be the same in different countries but it is vital to buy products or goods. Nigeria now uses an important model which is econometric regression to support the country (Lateef & Keikhosrokiani, 2022). This assignment will discuss the purpose of the study and it faces some problems which will be stated here in detail. The significance of the research will be defined here clearly. The exchange rate of products has a great history in Nigeria which will be described in this study. The cost of products is increasing day by day in Nigeria which is a big problem.

1.2 Research purpose

The main purpose of this research is to examine the fluctuation rate of goods or products in Nigeria. This research wants to explain the challenge of the fluctuating price of essential commodities in Nigeria. An exchange rate is a relationship with the currencies of different countries and it can improve the economy of a country. This study will explore the problem of fluctuating prices of essential things in Nigeria. The high price of raw materials influences the activities of the enterprise in Nigeria. The GARCH is an important model which is used to calculate the exchange price fluctuation (Kateri, 2021). An economic relationship is long for the distribution of currencies in the country. It can bring negative or positive impacts on a business which is long. The exchange rate or the price can be decided with the communication of supply and demands of abroad exchange. Nigeria is a highly imported economy country which faces several issues with the price of essential things. It can increase the performance of the business in the country and it can grow the GDP. The supply materials of the country can be imported by using the theory of economy. The main purpose of this study is to reflect the concept of fluctuation rate (Gandolph et al., 2021). Nigeria is a developing country which faces some problems with the price of commodities. This research will describe the weakness and strengths of the exchange rate and it will depict the management. The impact of this incident will be explained in this study in detail.

1.3 Problem statement

The problem of the fluctuation rate will be described here in detail. The exchange rate has some problems in business which will be depicted here in detail. Foreign exchange aids to make international transactions. International settlement can be held by using a transaction but it brings some issues to improve the economy of the country. Nigerian banks do not support the buyers or sellers which is a big problem for this incident. The economy is reducing in many countries which provides problems for the rate (Salaudeen & Adebayo, 2021). The high price of commodities is a big challenge for the common citizens of all countries. It can influence the socioeconomic transformation which can reduce the growth of the GDP. Low investment and low savings are issues for a country and they may cause unemployment. Oil export is impacted by the fluctuation rate in Nigeria which is a big problem for the country. The demand for abroad exchange consists of money transfers for financial commitments. Nigeria has many industries but they face the problems of exporting materials from the country. This study does not depict the impact of the fluctuation rate of the country clearly. This country has to understand the way to save for the growth of the economy. The activities of SMEs are not described here clearly which is a big problem (Asikhia & Naidoo, 2021). Control act was passed in Nigeria in 1962 to remove the problem of the exchange rate. It can increase the price of commodities immediately which is a big problem for businesses. The problems of this incident have been described here.

1.4 Aim of the Study

The current study aims at examining the effects of exchange rate fluctuation on SMEs' organisational performance in Nigeria.

1.5 Objectives of the Study

To investigate the factors influencing the exchange rate fluctuations in Nigeria
To investigate the impacts of exchange rate fluctuations on SMEs' organisational performance in Nigeria
To develop some unique strategies that will be used to address all these problems identified in 1 and 2 above

1.6 Research Questions

What are the factors influencing exchange rate fluctuations in Nigeria?
What are the impacts of exchange rate fluctuations on SMEs' organisational performance in Nigeria?
What strategies can be used to address all these problems identified in 1 and 2 above?

1.7 Research rationale

The main problem appears for the fluctuation rate in Nigeria. It can harm the relationship with other countries and it may reduce the growth of a business. It can impact the development of the GDP of Nigeria and this developing country faces various problems for this. The exchange rate brings various problems for the county and it can create some barriers to business (Tijani et al., 2021). It can decrease the growth of the business in the country and the public can be dissatisfied with the incident. The exchange rate is an important matter for all countries which can support the economy of a country. International transactions are necessary for a country which can improve the growth of the business. Nigeria wants to improve its economy by establishing industries in the country.
This is a big issue in the country which can increase the price of products in the country. Every country has to try to reduce the cost of products which can satisfy the common public of the country. It influences the performance of enterprises in Nigeria and it may reduce the GDP of the country. Nigeria now uses various models for the growth of the economy (Nwankwo et al., 2022). The government of the country can try to remove the problem from the country. They have to try to establish industries for the development of the county. The currency of the country must be improved to remove the situation. They can make a relationship with other countries for the growth of the economy. Nigeria has to gain experience with the improvement of the condition.

1.8 Research Significance

This research depicts the importance of exchange rates and the issues of fluctuation rates. The exchange rate mainly depicts the economic performance of a country. Economic stability can be improved in the country by the exchange rate (Ogunyemi & Fusch, 2021). A relationship can be made in a country by exchange rate. The public of Nigeria faces various problems with the rising prices of products. Nigerian banks provide loans to support the economy of the country. The exchange rate is important for the growth of the economy of a country. Nigeria experiences the fluctuation rate of products and they want to solve the problem by using various ways. Foreign exchange is much more important for a country to enrich its economy. The changing system of Nigeria has been described here in detail. The government of the country can control the price of the products and tax systems play an important role in this. The transition process of the country can reflect the economy (Ochi et al., 2021). The GDP of the country can be improved to remove the issues from the country. This research describes the economy of Nigeria and the fluctuation rate of the products. It mainly describes the economic performance of the country and it can increase the economy.

1.9 Snapshot of methodology

In order to collect data for this research report, quantitative research methodologies will be used throughout. The scientific positivist research philosophy, which is centred on explanation and prediction, will be applied by the researcher throughout this study procedure (Dane et al., 2021). In order to comprehend the human resource management plan at a deep level and identify the fundamental cause of the phenomenon, the researcher will use the positivist philosophy. Through a deductive research approach, it will look into how the topic and the variables are related and quantify the issue's notions. Due to the exploratory character of the study, the researcher will mostly use quantitative data-gathering techniques. In addition, the researcher will design open-ended inquiries to elicit data (Salau & NURUDEEN, 2022). It will set up the interview procedure to gather data from the four HR managers who work in the UK's hospitality-based industry. In addition, a theme analysis will be performed to gather data.

1.10 Research structure

This study's opening chapter provides a general overview of the dissertation's overall context. This chapter's principal value is in aiding the researcher in developing an understanding of the purpose, goals, and questions of the study. The complete framework of the literature review section is established with the aid of these materials. Additionally, the significance and research justification aid in understanding the dissertation's results.
The researcher has reviewed a number of publications from the literature that were based on the research objectives in the second chapter, which is a review of the literature. Aside from that, the conceptual framework aids in understanding the entirety of the literature review section, and the gaps are also mentioned in this chapter.
The complete concept and the selected points of the data that were obtained are discussed in the third chapter, which is about research methods. Understanding the future data analysis that was done in the fourth chapter is helpful.
The acquired data have been analysed based on the responses from the interviews in the fourth chapter, which is the findings and analysis one. Following that, a thematic analysis was completed, with the themes being based on the research objectives.
The fifth chapter, which is not the least, is the conclusion and recommendations. The conclusion aids in understanding the entire dissertation work and offers suggestions based on the problems examined. This chapter's connections to the aims, restrictions on the research, and future directions are also useful.

1.11 Chapter Summary

This assignment depicts the issues of fluctuation rate in Nigeria and the significance of the exchange rate. This country has the business of imports and exports which have been elaborated on here. The enterprise of Nigeria has been described here in detail. SMEs are a key catalyst in Nigeria which has been described here in detail. Nigerian banks help the country to solve the problem of fluctuation rates and they try to establish a relationship with foreign countries. The exchange rate has been depicted here to improve the economy of a country. This assignment discusses the problems of the fluctuation rate in Nigeria.

REFERENCE LIST

Abanikanda, E. O., & Akinbobola, T. O. (2023). Does Financial Deepening Matter in the Nexus between Exchange Rate Volatility and Foreign Investment? Insight from Nigeria. African Journal of Economic Review, 11(1), 33-49.

Aboh, S. O., Omame, I. M., & Isaac, A. U. (2019). Effects of economic recession on universities libraries in Nigeria: A review approach. Library Philosophy & Practice (e-journal), 2783. Retrieved from:

Abubakar, I., Abdullahi, R., & Ibrahim, H. B. (2021). Moderating Effect of Strategic Improvisation on product Innovation and Performance of Manufacturing SMEs. Asian Journal of Management, 12(3), 237-242. Retrieved from:

Ahmed, A. Y., & Mwangi, L. W. (2022). Working Capital Management and Financial Performance of Small and Medium Enterprises in Garissa County, Kenya. International Journal of Current Aspects in Finance, Banking and Accounting, 4(1), 56-71. Retrieved from:

Alabi, F. A., David, J. O., & Aderinto, O. C. (2019). The impact of government policies on business growth of SMEs in South Western Nigeria. International Journal of Management Studies and Social Science Research, 1(2), 1-14. Retrieved from:

Alaka, S. N., Ajemunigbohun, S. S., & Balogun, M. T. (2022). Risk Management Techniques and Insurance Buying Behaviour: Evidence from Small and Medium-Sized Enterprises in Lagos, Nigeria. Acta Universitatis Danubius: Oeconomica, 18(2). Retrieved from:

Asikhia, O., & Naidoo, V. (2021). Assessment of the moderating effects of Nigerian market environment on the relationship between management success determinants and SMEs’ performance. Problems and Perspectives in Management, 18(4), 388. Retrieved from:

Brittain, S., Ibbett, H., de Lange, E., Dorward, L., Hoyte, S., Marino, A., ... & Lewis, J. (2020). Ethical considerations when conservation research involves people. Conservation Biology, 34(4), 925-933.

Bussière, M., Gaulier, G., & Steingress, W. (2020). Global trade flows: Revisiting the exchange rate elasticities. Open Economies Review, 31(1), 25-78.

Byun, H., Chiu, W., & Bae, J. S. (2018). Exploring the adoption of sports brand apps: An application of the modified technology acceptance model. International Journal of Asian Business and Information Management (IJABIM), 9(1), 52-65.

(2022, June 8). System theory. Centers for Disease Control and Prevention. Retrieved December 30, 2022, from

Fill The Form

Download Sample 📩

Fill The Form To Download Sample