114
American Scientific Research Journal for Engineering, Technology, and Sciences (ASRJETS)
ISSN (Print) 2313-4410, ISSN (Online) 2313-4402
© Global Society of Scientific Research and Researchers
http://asrjetsjournal.org/
Impact of Naira Exchange Rate on Prices of Selected
Construction Materials in Ekpoma, Edo State, Nigeria
B. O. Obaedo
a*
, G. E. Oseghale
b
a
Department of Building, Ambrose Alli University, Ekpoma, Nigeria
b
Department of Building Obafemi Awolowo University, Ile-Ife, Nigeria
a
Email: obaedobarth@gmail.com, barth.obaedo@aauekpoma.edu.ng
b
Email: oseghale2006@yahoo.co.uk, oseghaleehis@oauife.edu.ng
Abstract
This paper presents the result of the impact of naira exchange rate on prices of selected construction materials in
Ekpoma of Edo state, Nigeria, by examining the trend in naira exchange rate values and selected construction
material prices over a five (5) year duration and the impact of naira exchange rate on the price of selected
construction materials. The study extracted information on monthly naira exchange rate values from the
monetary authority’s database of the central bank of Nigeria and adopted a survey approach to gather
information on the prices of selected construction material. Data obtained were analyzed using percentages,
Pearson Correlation Coefficient and regression analysis. Findings revealed that there was a strong positive
correlation between the naira exchange rate and construction material prices. The study recommends that the
monetary authority should research and implement a naira exchange rate stabilization/reduction policy.
Keywords: Construction; Exchange-rate; Material; Naira; Price.
1. Introduction
Author [1] envisaged the construction industry would play a powerful role in economic growth and produce
structures that will add to productivity and quality of life. Construction objectives are achieved through the
harness of resources (Manpower, Money, Machines and Materials). The author [2] outlined that building
materials are expected to satisfy three basic functions. The material must meet some technical performance
requirements of the building or structure itself to ensure normal use; the building material must resist the erosion
of the surrounding and harmful medium in use to ensure a durable building or structure, and the building
material must not pose a threat to the safety and health of the user.
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* Corresponding author.