Popogbe Oluwaseyi OmowunmiIghodalo Ehizojie David2025-05-132025-05-132023Popogbe, O.O and Ighodalo, E.D. (2023). Foreign Exchange Rate and Firm Survival: Evidence from Nigeria. UNIBEN Journal of Human Resource Management. 2(1);https://repository.crawforduniversity.edu.ng/handle/123456789/129The role of monetary policy is crucial for the survival of the industrial sector. This study focuses on examining the relationship between foreign exchange rates and firm survival in Nigeria. The research utilizes secondary data from the World Bank Development Indicators (WDI) and the Central Bank of Nigeria's Statistical Bulletin, covering the years 1986 to 2021. Industrial output (INO) serves as a proxy for firm survival, while the independent variable is the foreign exchange rate (FEX). The stationarity of the variables was confirmed through unit root tests conducted at the level and first difference. The estimation technique employed in this study is the bounds testing cointegration approach, specifically the Autoregressive Distributed Lag (ARDL) model. The empirical model incorporates control variables such as interest rate, gross capital expenditure, and lending interest rate. The findings of the study reveal that an increase in the foreign exchange rate has a negative impact on the performance of the industrial sector. This implies that if the exchange rate continues to rise, the long-term survival of the Nigerian industry will be at risk. Hence, it is advisable to uphold a stable foreign exchange rate and facilitate its accessibility to industries in Nigeria.enArticle