Economic and Financial Review


Central Bank of Nigeria


Inflation, Monetary Phenomenon, Non-Monetary Dynamics, Money, Interest Rates, Central Banking, Supply of Money and Credit


Is inflation always a monetary phenomenon in Nigeria? Autoregressive Distributed Lag (ARDL) results of Nigerian data, spanning 2005q1-2017q4, indicate that changes in money supply have no long-run significant impact on domestic price level behaviour. The results, however, reveal that non-monetary factors: import, global oil price, exchange rate, inflation expectation, fuel pump price and monetary policy rate significantly upsurge inflationary pressure. Conversely, household income (the shadow of unemployment) significantly dampens inflationary pressure while fiscal deficits moderate the pressure. The findings establish the dominance of structural and fiscal dynamics in the inflation equation of the economy.

Author Bio

The authors are staff of the Research Department, Central Bank of Nigeria.

Publication Title

CBN Economic and Financial Review





Recommended Citation

Achua, J. K.; Nagado, H. & Okafor, I. I. (2020). Is inflation Always and Everywhere a Monetary Phenomenon? Evidence from Nigeria. CBN Economic and Financial Review. 58(1), 81-102.



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