Title:
INFLATION IN NIGERIA: CHALLENGES AND PROSPECTS FOR SUSTAINABLE DEVELOPMENT

Authors:
Esther Morolayo Olabisi, Cameroon

Abstract:
This study assesses the challenges and prospects of Inflation on Nigeria’s Sustainable Development Agenda. Sustainable development is proxied using the Sustainable Development Index. The research adopts secondary data from sources, including the Central Bank of Nigeria, the National Bureau of Statistics, and the World Bank. The data used in the study covers a period from 1997 to 2023. The Autoregressive Distributed Lag (ARDL) model is employed to analyze the relationship between Inflation and Sustainable Development. GDP, Foreign Direct Investment, and Exchange rates were used as control variables used to account for the overall economic performance of Nigeria. This is to control for the influence of economic growth on sustainable development while focusing on the impact of inflation. Also, the validity and reliability of the data are ensured through the application of the Augmented Dickey-Fuller test (ADF), Heteroscedascity Test and Multicollinearity Test. The research findings reveal a significant negative impact of inflation on Nigeria’s Sustainable Development Agenda. These results highlight the crucial role of Inflation control in the pursuit of sustainable development objectives in the Nigerian context. This study contributes to the existing body of knowledge regarding the interplay between inflation and sustainable development outcomes and may provide insights for policymakers and stakeholders in Nigeria seeking to foster sustainable development in the face of economic challenges.