Globalization and Price Stability in Nigeria

This study empirically investigated the impact of globalisation on price stability in Nigeria over a thirty-three-year period (1990 - 2022). Trade openness, real exchange rate, foreign direct investment, and official development assistance were employed as indicators of globalisation, but the consumer price index functioned as a sign of price stability. The analysis employed time series data sourced from the Central Bank of Nigeria (CBN) statistics bulletin and the World Bank Development Indicators. Adopted data analysis approaches comprised the ADF statistic, boundaries co-integration test, and ARDL methodology. The research results indicate that the level of trade openness, foreign direct investment, and official development assistance have a statistically substantial unfavourable impact on the consumer price index in Nigeria. Conversely, the real exchange rate has a statistically substantial favourable impact on the consumer pricing index in Nigeria. The research upshots indicate that lobalisation has a substantial role in determining and improving price stability in Nigeria. The report advised the government to adopt strategic trade policies that promote the diversity and competitiveness of Nigerian exports. Enhanced trade liberalisation may result in heightened competition, improved efficiency, and reduced pricing.