For many nations around the world, inflation has been a major economic fret. The most severe increase in inflation in over thirty years has impacted fiscal accounts, exacerbated poverty, and changed the distribution of households’ well-being, necessitating a response from policymakers. However, inflation's distributive implications are much more complicated. The study aims to assess the effect of inflation on the cost-of-living crises in Nigeria. Documentary research design was adopted for the study. Findings indicated that Nigeria's inflation rate has been higher than the sub-Saharan and African average for years, surpassing 24 percent in 2023. It also revealed that Nigeria’s inflation keeps devaluing the local currency and lowering citizens’ purchasing power, thus making the poor further poorer and even the working class more susceptible. The study suggests that, to address Nigeria’s inflation and cost-of-living concerns, government must lower its budget deficit and implement substantial structural changes through monetary and fiscal policy.
For many nations around the world, inflation has been a major economic fret. The most severe increase in inflation in over thirty years has im pacted fiscal accounts, exacerbated poverty, and changed the distribution of households’ well-be ing, necessitating a response from policymakers. However, inflation’s distributive implications are much more complicated. The study explores the effect of inflation on the cost-of-living cri sis in Nigeria. Utilizing documentary research design, the study examines official publications of government agencies and non-governmental organizations that address inflation trends, cost of-living index and other related macroeconomic indicators in Nigeria. Data obtained were ana lysed using quantitative and qualitative content analysis. Findings indicated that Nigeria’s infla tion rate has been higher than the sub-Saharan and African average for years, surpassing 24% in 2023. It also revealed that Nigeria’s inflation devalues the local currency and lowers citizens’ purchasing power, thus making the poor more impoverished and even the working class more susceptible. The study suggests that, to address Nigeria’s inflation and cost-of-living crisis, the government should implement substantial changes through restrictive monetary policy and adopt fiscal tightening measures – also called contractionary fiscal policy – to foster economic stabilization.