Analysing the Effects of Inflation, Interest Rate and Exchange Rate on Nigerian Economy
DOI:
https://doi.org/10.54536/ajase.v5i1.7070Keywords:
Economic Growth, Exchange Rate, Inflation Rate, Interest Rate, NigeriaAbstract
his study analysed the effects of inflation, interest rate and exchange rate on economic growth in Nigeria. The study employed Ordinary Least Square (OLS) method for regression analysis to determine the fixed and random effects of independent variables on dependent variable using annual time series data from 1990 – 2023. The results revealed that economic growth was negatively and significantly affected by inflation rate and negatively and insignificantly affected by interest rate while it was negatively and significantly affected by exchange rate. Based on the findings, the study therefore, recommends that monetary authorities in Nigeria should control inflation to stabilize prices, reduce bank rate to lower cost of borrowing and manage foreign exchange to stabilize local currency.
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Copyright (c) 2026 Lawrence Babatunde Oni, Taiwo Adedayo Akinsanya
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