Research Journal of Business and Economic Management

RESEARCH JOURNAL OF BUSINESS AND ECONOMIC MANAGEMENT
Integrity Research Journals

ISSN: 2756-6676
Model: Open Access/Peer Reviewed
DOI: 10.31248/RJBEM
Start Year: 2017
Email: rjbem@integrityresjournals.org

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Devaluation and inflation: Impacts on the economic growth of Nigeria

https://doi.org/10.31248/RJBEM2024.102   |   Article Number: D71EEB081   |   Vol.8 (1) - February 2025

Received Date: 02 November 2024   |   Accepted Date: 17 December 2024  |   Published Date: 28 February 2025

Authors:  Lateef Kolawole Fijabi* , Abiola Akande , Aminat Omilani and Rasheed Oparinde Lasisi

Keywords: economic growth, Central Bank of Nigeria, devaluation, exchange rate, inflation, National Bureau of Statistics

ABSTRACT

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The study examined the effect of currency devaluation and inflation on Nigeria's economic growth. The research design adopted was ex post facto which involved data obtained from government agencies (1994 through 2023 - 30 years). Various economic statistics and regression analyses were carried out through the E-views 9.0 version. The findings showed that the null hypothesis could not be rejected because the p-value was greater than the 0.05 significance level (F-statistics = 2.797; p-value = 0.0788; Adjusted R2 = 0.1102). The result also revealed a negative and significant effect of inflation on the economic growth of Nigeria (coefficient = -0.1132; p-values = 0.0256); exchange rate fluctuation had a negative and insignificant effect on the economic growth of Nigeria (-1.26653, p-value = 0.4501). It was recommended that the government review its fiscal and monetary policies to stem the effects of inflation and exchange devaluation on the citizens.

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