The Impact of Inflation on Cost of Living in Nigeria

This study explores the impact of inflation on the cost of living in Nigeria, a critical issue that has significantly affected the economic well-being of its citizens. Defined as the sustained increase in the general price level of goods and services, inflation erodes purchasing power and complicates the affordability of essential commodities. The research identifies key drivers of inflation in Nigeria, including supply chain disruptions, exchange rate volatility, fiscal deficits, and the removal of fuel subsidies. The COVID-19 pandemic has further intensified these challenges by disrupting economic activities and leading to shortages of essential goods. The study aims to analyze how inflation affects various socio-economic groups and assess the effectiveness of government policies in managing inflationary pressures. Employing a mixed-methods approach, the research combines quantitative data on inflation rates with qualitative insights from affected households. The findings indicate that rising inflation disproportionately impacts vulnerable populations, particularly those reliant on fixed incomes or working in the informal sector. In response to these challenges, the study proposes actionable strategies for mitigating the adverse effects of inflation, such as enhancing agricultural productivity, implementing targeted subsidies, and adjusting monetary policies. By providing a comprehensive analysis of inflation's implications for living standards in Nigeria, this research offers valuable insights for policymakers seeking to stabilize prices and improve economic conditions for all citizens. Ultimately, the recommendations aim to foster resilience against inflationary pressures and promote sustainable economic growth in Nigeria.