INFLATION, SOCIOECONOMIC STATUS OF NIGERIAN’S AND ECONOMIC GROWTH (1981-2024)

This study examines the relationship between inflation, socioeconomic status, and economic growth in Nigeria over the period 1981 to 2024. The study is motivated by the persistent rise in inflation and its adverse effects on household welfare, income distribution, and overall economic performance in Nigeria. Specifically, it seeks to analyze the trends, determine the relationships, and examine the causal linkages among inflation, socioeconomic status, and economic growth. The study employs time-series data obtained from reliable sources such as the Central Bank of Nigeria and the National Bureau of Statistics. Relevant econometric techniques, including unit root tests, cointegration analysis, and Granger causality tests, are utilized to ensure robust and reliable results. Economic growth is proxied by real Gross Domestic Product (RGDP), while inflation is measured using the Consumer Price Index (CPI), and socioeconomic status is captured through relevant proxy indicators. The findings reveal that inflation has a significant negative effect on economic growth and disproportionately affects households with lower socioeconomic status by reducing their purchasing power and standard of living. The study further establishes that improvements in socioeconomic status contribute positively to economic growth, while a causal relationship exists among the variables, indicating strong interdependence within the Nigerian economy. Based on these findings, the study recommends the implementation of effective monetary and fiscal policies aimed at controlling inflation, promoting income stability, and improving the socioeconomic conditions of households. Additionally, policies that encourage economic diversification and inclusive growth are essential for achieving sustainable economic development in Nigeria.