Assessment of the Impact of Inflation on Economic Growth in Nigeria

This study examines the impact of inflation on Nigeria’s economic growth from 1990 to 2023. Using time-series econometric techniques, the study analyzes the short-term and long-term relationships between inflation, unemployment, poverty, national terrorism index, and economic growth. the findings suggest that inflation has a significant negative impact on economic growth, both directly and indirectly through its influence on unemployment and poverty. Additionally, we find a strong positive correlation between national terrorism index and inflation, further exacerbating the negative effects on economic growth. The study concludes with policy implications, emphasizing the need for macroeconomic stability, effective security measures, and targeted social policies to mitigate the adverse effects of inflation and insecurity on Nigeria’s economic development.