Abstract:
In this study, the researcher set out to examine the causative factors of the unfavourable trends in Nigeria's Balance of Payment (BOP) for the period 1970-2000. Towards this end, the researcher randomly selected 51 staff of the Central Bank of Nigeria (CBN) to forms the study sample. The members of study sample were issued with 51 copies of a structured questionnaires to complete their response to the questions contained in the questionnaire was analysed using percentages and chi-square (X2) tests. Based on this analysis, the researcher made the following findings: 1. The BOP deficits being experienced in Nigeria was caused by many factors, such as: excessive importation over exportation, over-dependence on foreign capital, currency devaluation, unfavourable balance of trade and poor industrial policy. 2. The impact of the BOP deficit In Nigerian economy includes: Poor industrial growth, high unemployment rate, poverty and low standard of living, inflation and foreign dominance of the economy. As regards, the correction of the unfavourable BOP faced by Nigeria, the researcher recommended that the government should adopt some export promotion strategies. This they should do through the removal of export duties, addition of subsidies to exports, import substitution, sound industrial policy .and revaluation of the national currency.
