Impact Of Inflation On Poverty Rate In Nigeria

• Mohammed Ishaka Gani

  Department of Economics, Faculty of Social Sciences, Federal University of Lafia, Nasarawa State, Nigeria

  Author

• Musa Ibrahim

  Department of Economics, Faculty of Social Sciences, Federal University of Lafia, Nasarawa State, Nigeria

  Author

• Sarah Ali Agara

  Department of Economics, Faculty of Social Sciences, Federal University of Lafia, Nasarawa State, Nigeria

  Author

The study investigates the impact of inflation on poverty rate in Nigeria. It uses secondary data from CBN bulletins and world development indicator (WDI) bulletins from 2000-2023. The data was analyzed with the Autoregressive distribution lag (ARDL) method capturing by Multiple Linear Regression model. From the analysis, the ARDL result reveals that there is a positive significant relationship between National Poverty Level (NPI) and Inflation Rate (INF) in Nigeria. From the Augmented Dickey Fuller (ADF) test, only National Poverty Index, NPI was stationary at level while Inflation Rate, INF and Basic School Enrollment, BSE were stationary at first difference. The Granger Causality test showcased bidirectional causalities between the NPI and INF. However, there is no causality between NPI and BSE over the period of study. The ARDL Bounds test showed that there exists a long-run relationship between Inflation and National Poverty rate in Nigeria. The study concludes that the cause to poverty lies with the inflation in the country. The study recommends that families should be encouraged to enroll their children to basic schools as this has been found to be beneficial in poverty reduction. Moreover, policies and structures that will reduce inflation must be put in place if the government must be taken seriously when it comes to fighting poverty

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