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A SHORT HISTORY OF INFLATION RATE IN NIGERIA

A SHORT HISTORY OF INFLATION RATE IN NIGERIA

Inflation has been a major problem facing Nigeria right from the period of civil war (1966 – 1970). Prior to this period, the Nigerian economy was in steady growth. This condition continued till the time of the first military intervention in 1966 when there was a deliberate policy of fiscal and monetary discipline.

goods and services

There was a balanced budget and there was no inflation.

Due to increase in government expenditure, budget deficit became acceptable to the government and inflation started to set in. by 1973 inflation had risen to about 6%. In that same year, the Naira was devalued and the prices of imported commodities increased.

 In 1974, the Udoj i salary award took the inflation figure from 13.8% that year to about 34% in 1975 due to increase in salaries and wages of workers. However, there have been fluctuations in the level of inflation in Nigeria.

  1.     economic tools for nation building
  2. budgeting
  3. factors affecting the expansion of industries
  4. mineral resources and the mining industries
  5. demand and supply
  6. types of demand curve and used
  7. advertising industry
  8. factors of production
  9. entrepreneur
  10. joint stock company
  11. public enterprises
  12. private enterprises
  13. limited liability companies
  14. migration
  15. population

 For example, the inflation figure 1982 was just about 7% but rose to 24% in 1983 and to 39% in 1984 and it became worse in 1986 when Second-tier Foreign Exchange Market (SFEM) was introduced.

 The inflationary figures stood at 40%. In any case, inflation has been controlled by successive governments but it has not yet been eliminated.

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