The Role of Deposit Money Banks on Small Scale Entrepreneurial Development in Nigeria[ 2012 to 2023

Abstract
Exchange rate being the value for which the Naira could exchange for another has been found to
be volatile in Nigeria as it accounted for the sluggish economic performance and distorted growth
pattern. The study set out to find if a relationship exist between the gross domestic product and
exchange rate using time series data from 1980 – 2024 and it was discovered that a significant
positive relationship exist as the independent variables jointly accounted for the variation in the
dependent variable. The value of R2 = 0.645219 implies that about 64 % of the total variation in
gross domestic product is explained by the independent variables. The remaining 36% is attributed
to the variables not included in the model. The F* = 13.73480 with (31, 2) degree of freedom >
F0.05 value (3.32), i.e. Fcal = 13.73480 > F0.05= 3.32. On this account, the null hypothesis is
rejected and the alternative hypothesis accepted. This indicates that F-statistics is statistically
significant implying that the explanatory variables are significant. Overall, the Durbin-Watson
test result of 0.080360 < 2.50 bench mark signifies absence of auto-correlation in the model.
From the result, exchange rate management should be taken very seriously while government
officials are advised to shun corruption in the system as government creates atmosphere for
stability of the exchange rate of the Naira. On interest rate, a total reduction will improve
investment and productive activities to create employment and increase output of goods and services.