The Effect of Inflation and Devaluation on Nigeria's Economic Expansion (1998–2023)
DOI:
https://doi.org/10.59890/ijefbs.v2i6.108Keywords:
Devaluation, Economic Growth, Inflation, NigeriaAbstract
The study analyzed the impact of currency devaluation and inflation on Nigeria's economic growth using data from 1998 to 2023 and conducting econometric and regression analyses in E-views 9.0. The results showed that the null hypothesis could not be rejected because the p-value was greater than the significance level of 0.05 (F-statistic = 2.879; p-value = 0.0788; Adjusted R2 = 0.1304). The result also revealed a negative and significant effect of inflation on Nigeria’s economic growth (coefficient = -0.1342; p-values = 0.0256); exchange rate fluctuation had a negative and insignificant effect on Nigeria's economic growth (-1.38774, p-value = 0.4682). It has been suggested that the government examine its monetary and fiscal policies in order to lessen the impact that inflation and currency devaluation have on the populace.
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