Authors: Akinyemi, S. G., Igioze, M. and Ehigie, O. T
CITATION: Akinyemi, S. G., Igioze, M. and Ehigie, O. T (2025). Modelling the relationship between monthly exchange rate and average price of petrol (app) (2019 – 2023). Frontline Professionals Journal 2(5), 1-6
ABSTRACT
This work aims to model the relationship between Nigeria’s exchange rate (NGN/USD) and the monthly average price of petrol (APP). The source of data collection is the secondary method and data obtained from www.statista.com/statistics and the Central Bank of Nigeria Statistical Bulletin. The data were analyzed with the aid of SPSS 29. The result showed that there is a significant positive relationship between the exchange rate and the monthly average price of petrol. On the nature of the relationship, six (6) models were fitted to the bivariate data and the polynomial of order 2 (quadratic) model
was found to be the best model as it had the highest R ̅2 and Adjusted R ̅2 of 0.762 and 0.752, respectively. Based on these conclusions, it was recommended that Government should look critically at ways to control the fall of the Naira to the US Dollar.
Keywords: NGN/USD, rate, petrol, relationship, quadratic