ISSN: 2695-2246 STRIDES EDUCATIONAL FOUNDATION Toriola A. K. Dept of Economics, Olabisi Onabanjo University, Ago-Iwoye, Nigeria. toriolaanu@gmail.com Folami R. A. Dept of Banking and Finance, Olabisi Onabanjo University, Ago-Iwoye. Nigeria. Afolabi A. O. Dept of Business Administration, Olabisi Onabanjo University, Ago-Iwoye, Nigeria. Ajayi F. O. Dept of Economics, Olabisi Onabanjo University, Ago-Iwoye, Nigeria. This paper and more can be downloaded for free from http://www.bequarterly.rysearch.com Journal home page: http://www.bequarterly.rysearch.com Volume 7 (2020) • 13 – 25 Anu Keshiro Toriola, Rahmon Abiodun Folami, Adewale Olakunle Afolabi, Felix Odunayo Ajayi The implications of exchange rate fluctuations on human welfare in Nigeria A b s t r a c t In Nigeria, the sliding exchange rate has positioned the country amongst nations with the lowest standard of living. This study examined exchange rate fluctuations and human welfare changes in Nigeria. We specifically examined the trend of exchange rate and human welfare, investigated the effect of exchange rate fluctuations on human welfare indicators, and assessed the direction of causality between exchange rate and human welfare indicators in Nigeria. The study follows ex post facto research and data were sourced from Central Bank of Nigeria (CBN) Statistical Bulletin and World Bank Development Index (WDI) between 1981 and 2017. The Ordinary Least Squares (OLS) and Ganger causality test were used in the actual estimation. The result showed that, interest rate exerts a significant positive effect on human welfare in Nigeria while exchange rate fluctuations and inflation exert an insignificant effect on human welfare in Nigeria. The Granger causality test established a unidirectional causality effect of human welfare on exchange rate fluctuations in Nigeria. The study recommended that government should discourage the importation of all products that can be produce locally and which the country has abundant resources to produce to boost the exchange rate. Keywords: Exchange rate Human welfare Interest rate Inflation JEL Classification: C32 D60 N37 F31 Received: 4 November 2019 Revised: 15 January 2020 Accepted: 20 May 2020 How to cite this article: Toriola A. K., Folami R. A., Afolabi A. O., & Ajayi F. O. (2020). The implication of Exchange Rate Fluctuations on Human Welfare in Nigeria, BizEcons Quarterly, 7, 13–25. B i z e cons Q uarterly