The quality of governance in any modern society is largely dependent on the role of government institutions in shapening the regulatory and policy landscape; in order to empower private sector driven growth and macro managed domestic currency value. It is in this regard, the study emanated on Foreign Exchange Management and Economic Growth Nexus: The Role of Institutional Quality in Nigeria. Method of Fully Modified Ordinary Least Squares (FMOLS) was employed to study the effect of institutional quality to nominal effective exchange rate on economic growth from 1996 to 2021.Institutional quality components including government effectiveness and regulatory quality functioned as the moderator. Research finding revealed statistically significant but negative relationship exist between nominal effective exchange rate and economic growth due to decline in institutional quality during the review period. Also, the coefficient of interactive term suggests a complimentary effect exist between nominal effective exchange rate and institutional quality in building strong economy. The study, however, recommend in strong terms: the regulatory authorities, especially Central bank of Nigeria and Federal Ministry of Finance should work harmoniously to develop synergistic strategies to regulate and encourage private sector participation in economic growth. And, ensure effective and credible exchange rate policy be implemented so as to strengthen the value of the Naira through strategic intervention, monetary policy recalibration and fiscal policy adjustment.

Keywords: Exchange rate management, governance, productivity, institutional quality

Corresponding Author: Silva Opuala-Charles* E-mail Addresses: president@gacpbs.com (Silva Opualla- Charles) *; jonaholo@yahoo.com (Jonah Orji). JEL Classification: D4, E5, F6, O15, J10;

ORCID ID: 0000-0003-1591-1141