ABSTRACT

Many Nigerians have been greatly concerned with the problem of Nigeria economy especially the persistent depreciation of the naira exchange rate. Some have tri4ed to summarize them and Infact, some impact have been made through their work I identifying the major difficulties confronting the smooth running of the economy and naira exchange in particular.

It was in the light of these difficulties that the federal government launched the structural adjustment programme.. (SAP) on 27th July 1986. and among the component of SAP was second tier foreign exchange market (SFEM).

This project is therefore designed to provide an in-depth of the cause of the persistent depreciation of the naira and appropriate possible measures for modalities. Frankly speaking, this topic cannot be effectively treated in perfect isolation of the foreign exchange market (FEM). Therefore, the beginning