ABSTRACT

This research work was carried out on the effect of Foreign Exchange Deregulation on manufacturing industries, a case study of Nigerian Eagle Flour Mills, Ibadan Oyo State. The aim of the study is to examine various policies directed towards mobilisation, conservation, allocation and utilisation of foreign exchange resources, to identify various methods adopted in the operation of foreign exchange transaction in Nigeria and to recommend plans on how we can achieve stability of the exchange rate to improve productivity of manufacturing industries. The research study covered Nigerian Eagle Flour Mills Ibadan. Primary and secondary sources of data were used for the study. Questionnaires were administered to 50 respondents, but 45 were collected and analysed using tables and percentage scoring technique. Text books, journals, Newspapers and internet were consulted as secondary sources of data. Result of the findings showed that to a greater extent low productivity of the company had been attributed to the deregulation of foreign exchange and that maintaining a favourable external reserve position and preserving international value of domestic currency, so a stable exchange rate will improve the productivity of the manufacturing industries. In conclusion, foreign exchange deregulation has played a significant role on Nigerian manufacturing industries.