ABSTRACT
The instability of Naira against foreign currencies has been a major setback sabotaging the revival process of stabilizing the country’s economy. This is coming because of the high importation of goods that necessitated having an exchange of Naira with other foreign currencies, particularly the Dollar. Nigerian economy solely relies on the exportation of crude oil. However, Nigeria imports refined petroleum products for internal consumption, which requires the use of billions of dollars. Moreover, there is no strike balance between what import from and export to foreign countries. The stabilization of Nigeria will help strengthen the country’s economy by making the right policy decision. Such a decision encompasses the domestic refining of crude oil and exploration of other means such as the Industrial Revolution, Agricultural Sector, and Information Technology & Computing, among others. Because of fluctuation of Naira, foreign investors are scared of coming to invest. Moreover, even some citizens they rather invest outside Nigeria than to invest locally. This paper proposes the conceptual model using Game Theory and Machine Learning to address the aforementioned challenges. The game theory will be used to resolve the conflict between the Naira and other foreign currencies for the stability of Naira and machine learning to build a model that will predict the possibility of appreciation or depreciation of Naira based on the government’s policy put in place.
