Impact of Inflation on Income Distribution in Nigeria

Usen; Ake-abasi Patrick; Odiong; Jacob Esu; Okon; Ekanem Nsikhe; Ashibuogwu Chukwuka

doi:10.56201/ijefm.v11.no2.2026.pg122.134

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Impact of Inflation on Income Distribution in Nigeria

Usen, Ake-abasi Patrick, Odiong, Jacob Esu, Okon, Ekanem Nsikhe, Ashibuogwu Chukwuka

Abstract

Inflation is increasingly prevalent in Nigeria which has consistently exceeded the upper boundary of the central bank's target range primarily due to the substantial depreciation of the naira. The study examined the impact of inflation on income distribution in Nigeria from 1991 to 2022, the study investigated the impact of income inequality and income distribution in Nigeria. The study utilized annual data obtained from central bank of Nigeria statistical bulletin and national bureau of statistics. Pre-estimation tests were conducted using the Jarque Bera (JB) test for normality and multicollinearity test while ordinary least square estimation technique was used in estimating the model. The findings reveal that inflation with the coefficient of-387.6 and probability value of 0.07 exert a negative and statistically significant impact on income distribution on economic growth. Based on the findings the study hence recommended policies aimed at reducing inflation and promoting income equality such as effective inflation control and price stability policies should be adopted which can serves as effective inflation control and price stability policies should be adopted which can serve as effective tools toward this aim also policies to promote education and regulate labor market should put in place , this can help mitigate the problem of income distribution in Nigeria. Key Words: Inflation, Income Distribution Nigeria, OLS (Word count: 207)

Keywords

InflationIncome Distribution NigeriaOLS (Word count: 207)

References

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Impact of Inflation on Income Distribution in Nigeria

Abstract

Keywords

References

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