The Relationship Between Exchange Rate Policy and Export Competitiveness of Nigerian Solid Minerals Exporters

This research investigates the relationship between Nigeria's exchange rate policy regime and the international competitiveness of solid minerals exporters, a sector identified as a priority diversification area under the Nigerian Minerals and Mining Act. Nigeria is endowed with extensive deposits of iron ore, limestone, tin, columbite, and gemstones, and the solid minerals sector has been designated as a key pillar of non-oil export diversification. However, the impact of exchange rate misalignment and management on the pricing and profitability of solid minerals exports has received limited attention in the research literature. The study adopts a descriptive and correlational research design using secondary data from the Central Bank of Nigeria, the Nigerian Mining Cadastre Office, and the National Bureau of Statistics for the period 2018 to 2023, supplemented by structured interviews with 30 licensed solid minerals exporters in Plateau and Nasarawa states. Regression analysis is used to examine the relationship between exchange rate levels, volatility indices, and solid minerals export volume and revenue trends. The theoretical framework draws on the purchasing power parity hypothesis and the export supply function literature. Findings are expected to indicate that naira overvaluation episodes are associated with reduced export competitiveness, while depreciation phases generate temporary revenue gains eroded by imported input cost increases. The study recommends a competitive exchange rate strategy that supports solid minerals exporters alongside sector-specific royalty and tax incentives to build the sector's export orientation. Keywords: exchange rate policy, solid minerals, export competitiveness, Nigeria, diversification