Economic and Financial Review


Central Bank of Nigeria.


Import Demand, Nigerian Economy, International Trade, Trade on Investment


The paper sought to examine the dynamics underlying the high import bills in Nigeria and proffered appropriate policy recommendations. In achieving this, the Autoregressive Distributed Lag (ARDL) technique was utilised to estimate the aggregate import demand function for Nigeria using the quarterly data covering the period 1970 to 2011. The paper found that the coefficients of external reserves, domestic consumer prices, level of income and exchange rate were all statistically significant, suggesting that these variables were important factors determining the level of imports in Nigeria. The short-run elasticity result revealed that Nigeria's aggregate demand for imports was both price and income elastic; implying that import demand would increase as the level of economic activity and domestic prices increased. Furthermore, the coefficient of the speed of adjustment revealed that it would take about 0.05 years for imports to respond to changes in any of the explanatory variables. The paper, therefore recommended appropriate fiscal policy measures to address the high level of consumer goods imports since it accounted for about 45.0 per cent of total imports between 2006 and 2011.

Author Bio

Englama, A. (PhD) and N. C. Oputa are Deputy Directors, G. K. Sanni is an Assistant Director, M. U. Yakub is a Principal Manager while O. Adesanya and Z. Sani are Senior Economists in the Research Department.

Publication Title

CBN Economic and Financial Review





Recommended Citation

Englama, A., Oputa, N. C., Sanni, G. K., Yakub, M. U., Adesanya, O. & Sani, Z. (2013). An Aggregate Import Demand Function for Nigeria: An Auto-Regressive Distributed Lag (ARDL) Approach. CBN Economic and Financial Review, 51(3), 1-18.



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