Does Inflationary Dynamics Impact on Nigeria’s Economic Growth?

Background: High inflation rate is one of the economic problems facing Nigeria. As the government is unable to provide a long-term solution to this issue, inflation in the economy is inevitable. Objective: The study aimed at exploring the medium and longstanding interactions of inflationary dynamics...

Full description

Saved in:
Bibliographic Details
Published in:Ianna Journal of Interdisciplinary Studies 2023-04, Vol.5 (1)
Main Authors: Paul Abdullahi Hassan, Adetokun Akeem, Ibrahim Ndatsu Ato, Abdulkamaru Salawu
Format: Article
Language:English
Subjects:
Exchange rate
Inflation
Interest rate
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Background: High inflation rate is one of the economic problems facing Nigeria. As the government is unable to provide a long-term solution to this issue, inflation in the economy is inevitable. Objective: The study aimed at exploring the medium and longstanding interactions of inflationary dynamics on Nigeria’s economic growth speed. Methodology: Autoregressive Distribution Lag (ARDL) bound estimation procedure was utilised in the study. The researchers used the Augmented Dickey-fuller test (ADF) for the stationarity test on the variables. Result: The study found that inflation has a detrimental long-term and short-term influence on Nigeria’s economic growth. This demonstrates that when inflation is excessively high, an economy's currency loses buying power as a result of an increase in prices. Unique Contribution to Knowledge: The study has demonstrated the link between inflation and Nigeria’s economic growth. Conclusion: The study concluded that inflation has a severe consequence on the Nigerian economy both in medium and longstanding periods. Recommendations: Giving the study’s findings, the study recommended stringent monetary policy.
ISSN:2735-9883
2735-9891