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The previous Governor of the Central Bank of Nigeria (CBN) had intended to introduce the N5,000.00 currency bill into the Nigerian economy and claimed that such currency bill would help it manage the exchange rate especially against the dollar. This generated a huge outcry from the public especially economists. The major reason was that this introd...
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Context 1
... there exist a state of imperfection in such industries, their producers could administer their prices through price discrimination techniques. Figure 3 Illustrates inflationary tendencies caused by supply-side factors. Point M. is referred to as the equilibrium point at full employment. ...
Context 2
... there exist a state of imperfection in such industries, their producers could administer their prices through price discrimination techniques. Figure 3 Illustrates inflationary tendencies caused by supply-side factors. Point M. is referred to as the equilibrium point at full employment. ...
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... For CNS→CPI, the CNS Granger causal effect on inflation rate indices of CPIA, CPIF and CPIL may be a result of expectation and inertial inflation, foreign content (foreign exchange rate), contagion and aggregate demand factors. The finding of the significant effect of the construction sector on the inflation rate agrees with the extant literature through the aggregate demand, growth and contagion factors [44,45,46]. ...
The construction sector is one of the largest single industries in the world contributing to the economy through its backward and forward linkages as well as aggregate demand. However, despite its importance to the development of the economy, it is severely hampered by instability or inflation. This study investigates the effect of the inflation rate on the construction sector through the econometric methodology to analyze time series data obtained from the year 2020 statistical bulletin (volume 30) of the Central Bank of Nigeria. The result indicates that inflation significantly impacts the construction sector. The study concludes that the construction sector is significantly affected by seasons and the Gross Domestic Product (GDP) whereas the construction sector significantly affects the price level. The study recommends the de-seasonalisation of the construction sector through industrialization. The government must implement fiscal and monetary measures to manage inflation to stabilize the construction sector. Finally, to stem the tide of the high cost of construction, the government should implement a policy to improve local content in the sector to immune construction from the vagaries of the foreign exchange market.
... Demand-pull or monetary theories of inflation define inflation situations where aggregate demand for goods and services exceeds aggregate supply, thereby leading to a general rise in price levels (Otto & Ukpere, 2016). This approach states that high government spending policies of central banks to raise money supply, rise in household and firms' consumption and prices in the international market compared to that of the domestic market are responsible for raising the price level (Ogbokor & Sunde 2011). ...
... Ogbokor & Sunde (2011) noted that this kind of inflation occurs mainly because of a rise in the cost of imported raw materials and an increase in the cost of labour. Otto & Ukpere (2016) noted that cost-push inflation can also be called "market power inflation" because the increase in the prices of goods and services originates from the supply side of the economy. These increases may arise from increased wage rates or a fall in productivity which also increases the cost of labour output. ...
This study examined the impact of money supply on inflation in Nigeria between 1981 and 2021, using Auto-Regressive Distributed Lag (ARDL) approach is employed to estimate long run relationship amongst variables. The data for the variables were sourced from CBN statistical Bulletin 2021 edition. The results of the test established a significant long run positive and negative relationship between Inflation and Interest towards money supply on inflation in Nigeria. Based on the results of the variables, it is therefore recommended that the policies put in place by the monetary and fiscal authorities in Nigeria should be such that will encourage the supply of money to a certain level in order to curb inflation in Nigeria in the short medium and long term.
... Demand-pull or monetary theories of inflation define inflation situations where aggregate demand for goods and services exceeds aggregate supply, thereby leading to a general rise in price levels (Otto & Ukpere, 2016). This approach states that high government spending policies of central banks to raise money supply, rise in household and firms' consumption and prices in the international market compared to that of the domestic market are responsible for raising the price level (Ogbokor & Sunde 2011). ...
... Ogbokor & Sunde (2011) noted that this kind of inflation occurs mainly because of a rise in the cost of imported raw materials and an increase in the cost of labour. Otto & Ukpere (2016) noted that cost-push inflation can also be called "market power inflation" because the increase in the prices of goods and services originates from the supply side of the economy. These increases may arise from increased wage rates or a fall in productivity which also increases the cost of labour output. ...
... According to Wang (2013) imported inflation is associated with oil price increases. The way in which imported inflation can be minimized is presented by Otto and Ukpere (2016). The first way is through anti-inflationary policy, that is, to increase the domestic supply of goods or services to meet domestic demand. ...
University-industry collaboration offers great opportunities both for the companies and the universities. Industry benefits in terms of direct recruitment channel and innovative co-creation potential, and the university benefits in terms of potential hands-on research environment, real-life teaching and learning possibilities and funding opportunities for research. The paper is based on a systematic literature review of the effectiveness of university industry collaborations from a holistic perspective in order to identify drivers and barriers to a fruitful collaboration based on the argument that effective knowledge transfer is one of the critical success factors. The paper has a special focus in the developing countries. The findings enable developing a practical framework for the universities to support their decision-making process.
... Food inflation is as a result of a situation where aggregate demand for food items exceeds aggregate supply of them. Usually the shortages create competition on the side of demand for the few available products which lead to some kind of informal bidding for the available items (Otto & Ukpere, 2016). ...
This study examines the relationship between rural banditry and the persistent rising price of food items in Nigeria with emphasis on Katsina State. The study adopts a content analysis method by relying solely on the secondary quantitative and qualitative data. It makes use of eco-violence and demand-pull theories in establishing and explaining the relationship. The finding of the research shows that rural banditry is one of the major causes of food inflation in the study area. It is recommended that the Federal Government of Nigeria should recruit, train and equip more security agents such as police, army and civil defense officers. If this is done it will greatly help in providing security to the local farmers for them to be able to attend to their farms which will result in producing and supplying more foods to our markets at lesser prices.
... Demand-pull or monetary theories of inflation define inflation situations where aggregate demand for goods and services exceeds aggregate supply, thereby leading to a general rise in price levels (Otto and Ukpere, 2016). This approach states that high government spending policies of central banks to raise money supply, rise in household and firms' consumption and prices in the international market compared to that of the domestic market are responsible for raising the price level (Ogbokor and Sunde 2011;Nazima, 2017). ...
... Ogbokor and Sunde (2011) noted that this kind of inflation occurs mainly because of a rise in the cost of imported raw materials and an increase in the cost of labour. Otto and Ukpere (2016) noted that cost-push inflation can also be called "market power inflation" because the increase in the prices of goods and services originates from the supply side of the economy. These increases may arise from increased wage rates or a fall in productivity which also increases the cost of labour output. ...
This paper examined the determinants of inflation in Nigeria using annual time series data covering the period of 1981 to 2017. This period has been carefully selected as it captures the different eras of policy implementation in Nigeria such as the pre–SAP era, SAP era, and the post–SAP era; and is long enough to make an objective assessment of the determinants of inflation in Nigeria. The study applied Auto–Regressive Distributed Lag (ARDL) methodology based on the outcome of the ADF unit root test which revealed that the variables are integrated of I (1) and I (0). The ARDL bounds test result provided evidence of a stronghold long-run relationship among the variables. This necessitated the estimation of ARDL short-run and long-run results. The short-run results of both models revealed that YGAP, M2, TGE, TIMP and UEMPR were significant determinants of inflation in Nigeria whereas the long-run results indicated that TGE, TIMP and UEMPR were significant determinants of inflation in Nigeria. The impact of YGAP, M2, TGE and TIMP was positive in both long and short runs whereas YGAP, TIMP, TGE and UEMPR impacted negatively on inflation in both periods. The outcome of all the diagnostic tests supported the acceptability of the models’ results. The study concludes that both demand–pull and cost–push factors are responsible for inflation in Nigeria and also provide the social infrastructure that would encourage private investment.
... The implication in hike and inflation is that each unit of the currency is bound to buy less than it had previously bought. Generally, Otto and Ukpere (2016) maintain that inflation could bring about the debasement of the means of exchange. While maintaining that the increase of prices of products and services is a regular and inevitable event of every economy whether it is developed or developing. ...
The hiking of the prices of essential commodities and services during festive periods is a phenomenon that
spikes tension among the poor masses in Nigeria. The book of Amos 8:5-6 presents a similar situation where
the traders and service providers in Judah induced high inflations after the new moon and the Sabbath
feasts, whereby causing suffering among the poor and the needy in the land. This paper adopted textual and
social contextual exegetical approach in interrogating the biblical passage of Amos 8:5-6, with the view of
understanding the socioeconomic culture that triggered inflation after the new moon and the Sabbath. It
also applied descriptive cross sectional method of data gathering and the capitalist theory of economics in
order to ascertain the implications of the hiking of the prices of goods and services during religious feasts in
Nigeria. Findings showed that price hike during religious feasts such as Easter and Christmas in Nigeria
triggers serious anxiety in the lives of the poor in Nigeria, rather than promoting the spiritual objectives
and the economic welfare such festivals should ideally afford. Similarly, traders in Judah, as recorded in
Amos 8:5-6 usurped the period of religious festivals for awkward inflation of the prices of goods which led
to the suffering of the poor and God’s judgement. Therefore, the study recommends a critical and deliberate
rethinking and re-orientation of the real meaning of religious feasts with regards to the people’s welfare.
... The views can be summarized as the demand and supply side causes of inflation. The demand-pull theories views inflation as situations where aggregate demand for goods and services exceed aggregate supply, thereby leading to a general rise in price levels (Onuchuku & Adoghor, 2000;Otto & Ukpere, 2016) The theory may be explained using the old or new quantity theory of money or the Keynesian theory. The quantity theory of money attempts to explain the link between money and general price levels. ...
Energy supply is the major source of growth for any economy in the world today. Human
economies are therefore motivated to refining and harnessing energetic resources in order
to have a stable electricity generation in Nigeria. The study therefore examined the impact
of the relevant factors that could affect electricity generation in Nigeria within the period
1970-2018. In order to capture the objective of this work, the study used auto regressive
distributed lag model (ARDL) approach. The ARDL is employed in the study in order to
capture the long-run and short-run changes in the variables used. The study found
significant and direct relationship between price of electricity, economic growth, installed
capacity and electricity generation in Nigeria. Also found in the results is the inverse
relationship between annual rainfall, gas consumption and electricity
generation in the long-run. The result also showed a good forecasting performance of the
model. The study therefore recommended the use of installed capacity, price of electricity,
electricity consumed, and economic growth as these could enable increase in electricity
generation in Nigeria. In addition to these, hydroelectricity power station should be located
where there is sufficient rainfall to enable the hydroelectricity function to its full capacity
... The views can be summarized as the demand and supply side causes of inflation. The demand-pull theories views inflation as situations where aggregate demand for goods and services exceed aggregate supply, thereby leading to a general rise in price levels (Onuchuku & Adoghor, 2000;Otto & Ukpere, 2016) The theory may be explained using the old or new quantity theory of money or the Keynesian theory. The quantity theory of money attempts to explain the link between money and general price levels. ...
Inflation series exhibit trend or seasonality that makes it difficult to analyze the inflationary pressures for monetary policy decision making. It is imperative to note that few empirical studies have tilted towards addressing the seasonality issues to track the sources responsible for these fluctuations. It is against this background that the study aims at developing a model of inflation with higher data points and taking into cognizance its periodic seasonal component and use the estimated model to make forecast. The study used monthly data sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin. Data was analysed using seasonal ARIMA model (SARIMA) which is an extension of autoregressive (AR) and moving average (MA) process in the popular Box-Jenkins methodology. With 300 data points, the study developed SARIMA (1,0,0) x (1,1,0)12 from among the competing models based on its AIC and BIC values. The estimated model is found to be adequate in making forecast using a sample data for 2019. The study thus recommends that monetary authorities should consider the seasonal component in designing monetary policies targeted at inflation to stabilize the economy.
This research work investigated the “responsiveness of inflation to crude price changes in Nigeria”. The data for the study were drawn from 2021 CBN statistical bulletin, world development indicator and investing.com spanning from the period, 1995-2021. Inflation rate was used as the independent variable while Brent crude price, West Texas intermediate and OPEC reference basket crude price were the dependent variables. The study reveals that Brent crude price has a negative and significant impact on inflation. Also West Texas intermediate crude price has a positive and significant impact on inflation. It also revealed that OPEC reference basket crude price has a negative and insignificant impact on inflation. A long run relationship between the crude price variables and inflation was also found, On the basis of the findings, the study recommended that the Nigerian government should make use of subsidies so the effect of these changes is not heavily felt by consumers. Furthermore, during periods of crude prices increases, the monetary policy actions of the central bank should focus on addressing the resultant inflation. Also, the central bank should increase its efforts directed towards encouraging the production of food items in the country by providing more funds to the agricultural sector as this will keep to a minimal the effect of oil price increases on food inflation. Lastly, the government should ensure that existing refineries are fully functional and also build new ones as this will nip the problem of the pass through effect of global crude price changes on domestic inflation in the bud.
