Abstract
Devaluation is the reduction in the value of the money of one
country when it is exchanged for the money of another country. A
devaluation is an attractive option for nations in a recession like
Nigeria. This paper looks at the effects and the possible solution of
naira devaluation. The paper also obtains the use of secondary data of
Nigeria’s exchange rate spanning from 1972 to 2020.
The study then recommends that the Nigerian government should
diversify the economy and that devaluation of currency should be the
last resort to the economic imbalance.
