EXCHANGE RATE UNIFICATION AND ACCOUNTING VALUE OF QUOTED MANUFACTURING FIRMS IN NIGERIA

This study delves into how exchange rates unification impacts the accounting values of publicly tradedmanufacturing companies in Nigeria. With ongoing fluctuations in exchange rates and a recent move towards aunified system, there are growing worries about how this affects company valuations and financial stability in themanufacturing industry. To explore this, we used an ex post facto research design, analyzing a balanced panel offifteen firms listed on the Nigerian Exchange from 2013 to 2022. We gathered secondary data from auditedfinancial statements and the Central Bank of Nigeria's Statistical Bulletin. Using panel regression techniques, welooked at how the bilateral exchange rate (DBER), cross exchange rate (DCER), and trade-weighted exchangerate index (DTWI) influence market value (DMV), book value (DBV), unpaid interest (DUI), and enterprise value(DEV). The findings reveal that exchange rate indicators have a significant negative impact on both market andenterprise values. Specifically, DBER (−0.0115; p < 0.05), DCER (−47.6805; p < 0.01), and DTWI (−0.1652; p< 0.01) all contribute to a decrease in market value (R² = 0.1293), and similar negative trends are noted forenterprise value (−0.0109; −45.5340; −0.1642; p < 0.05). Interestingly, book value shows a slight positivecorrelation with DTWI (3.2445; p < 0.05), while unpaid interest appears to be mostly insignificant. In summary,the volatility of exchange rates tends to lower firm valuations. The study suggests implementing policies forexchange rate stability and enhancing foreign exchange risk management to improve the performance ofmanufacturing firms.