Causes and drivers of inflation in Nigeria: A comprehensive review

This review article provides a comprehensive analysis of the causes and drivers of inflation in Nigeria. Inflation is still a chronic problem for the Nigerian economy, and understanding the fundamental causes is critical for successful policy formation and economic stability. The review investigates macroeconomic issues such as monetary policy, fiscal policy, exchange rates, and international trade dynamics in order to determine their influence on Nigerian inflation. It also investigates the link between these variables and inflation expectations and persistence. The evaluation looks at structural variables that contribute to inflation, such as supply-side shocks like food and energy price variations. Institutional problems such as corruption, poor governance, and policy implementation difficulties are investigated for their impact on inflationary pressures. The efficacy of regulatory frameworks, the stability of the financial industry, and the actions of central banks are all assessed. The assessment underlines the interaction and complexity of these elements, emphasizing the importance of a comprehensive strategy for addressing inflation in Nigeria.