FOREIGN EXCHANGE AND FINANCIAL PERFORMANCE OF CONSUMER GOODS MANUFACTURING FIRMSIN NIGERIA
Abstract
This study examined foreign exchange and performance of consumer goods manufacturing firms in Nigeria covering the period 2018-2022. All twenty-eight (28) consumer items listed on the Nigerian Exchange Group (NGX) comprise the study's population; ten (10) of these were chosen using a judging sample. While return on assets and earnings per share served as stand-ins for profitability, the exchange rate and interest rate served as stand-ins for foreign exchange. The Nigerian Exchange Group (NGX) and the annual reports of the companies under examination provided the data for the study, which used an ex post facto design. Regression analysis was used to conduct the analysis, and the results showed that the exchange rate had a negative significant effect on return on assets while interest rates had a positive insignificant effect on return on assets. Additionally, the study found that foreign exchange had a negligible impact on the financial performance of Nigerian manufacturing firms, and among other things, the monetary authority should continue to implement policies that will stabilize the exchange rate and eliminate the negative impact of exchange rate fluctuations on Nigeria's manufacturing performance.
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