Impact of Inflation on Economic Growth in Nigeria (1992 2022)

Abstract

The paper examines the relationship between inflation and Economic growth in Nigeria from 1992 to 2022. Empirical evidence is obtained using annual data from the co-integration and error correction models. Evidence revealed a long-run negative relationship between inflation and Economic growth in Nigeria. Inflation is harmful rather than helpful for the growth of the nation. The policy implication is that to promote growth and keep inflation low, the government needs to control budget deficits. To check the growing challenges posed by inflation, there is a need to divert public expenditure from consumption to investment.