Nexus between Inflation and Economic Growth in Nigeria (1990-2024): Implications for Economic Stability
*1Danlami Dauda, 2Hafsat Muhammad, 3Alako Augustine Timothy, and 4Ibrahim Mohammed
*1,2,&3Department of Economics, Niger State College of Education, Minna, Nigeria Email: danlamidauda2015@gmail.com
4Secondary Education Board, Minna Niger State, Nigeria
Abstract
The study examined the nexus between inflation and economic growth in Nigeria from 1990 to 2024. Implications for economic stability. An ex post facto research design was employed, and secondary data were sourced from the World Bank (WB, 2024). Multiple linear regression was conducted using the Statistical Package for the Social Sciences (SPSS) to assess the relationship between inflation and economic growth in Nigeria. The results revealed that both inflation and population growth significantly influence Nigeria’s economic growth. A one-unit increase in inflation reduces economic growth by 0.049 (p = 0.025), while a one-unit rise in population growth boosts it by 17.003 (p = 0.001). The study recommends, among other measures, that the government should implement effective monetary policies to maintain inflation at a sustainable level to support economic growth. Additionally, collaboration between the Central Bank of Nigeria and fiscal authorities is essential to balancing inflation control with economic expansion.
Keywords
Inflation, Population Growth and Economic Growth
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