Analysis of the impact of interest rate on balance of payments in Nigeria

Existence of interest rates differences between home country and abroad leads to capital mobility. The relationship between interest rate and the balance of payment becomes more evident by looking at country’s capital account. Given that Nigerian economy has recorded unfavourable BOP positive in recent years, it becomes imperative to study the impact of interest rate on BOP in Nigeria. This study therefore sought to determine the impact of interest rate on BOP in Nigeria. This study used secondary data sourced from Central Bank of Nigeria Statistical Bulletin (2021) in its analysis.