Volatility of Foreign Exchange Rate and Infrastructural Development: An ARCH/GARCH Analysis From Nigeria (1986-2020)

Living standard of citizen and economic growth depends entirely on infrastructural development exchange rate stability in a nation, therefore, the foreign volatility Nigeria, 1986-2020.was examined with contradictory empirical. Central Bank Nigeria provides dataset analysed by ARCH/GARCH model along-side vector model. Empirical findings revealed both negative positive relationship capital expenditures resulting from total exports expenditures, as imports have impact. There is impact between external debt service payment expenditures. Co-integrating coefficient slow adjustment speed parameter about 21 percent. The estimates that controlled its own GARCH components rather than ARCH factors or shocks. Therefore, determined shocks GARCH. study recommends policy inconsistency regarding should be discouraged prioritised three tiers government it germane to welfare living citizen.