Impact Of Inflation On Cost Of Living In Nigeria 1982 To 2012

1.3 RESEARCH QUESTIONS

In-order to achieve the stated objectives of the study, the researcher developed the following research questions:

1. Why have all the policies used been unable to reduce inflation and cost of living to an acceptable level?

2. How can the economy of Nigeria be sustainable into the foreseeable future?

3. What are the economic implications of high inflation and higher cost of living on the economy of Nigeria?

1.4 OBJECTIVES OF THE STUDY

The main aim of the study will be to examine various monetary and fiscal policies that will help sustain the economy of Nigeria with much emphasis on how to reduce inflation and achieve lower cost of living for her citizenry.

Specific objectives of the study will be aimed at:

1. To determine the impact of inflation on the cost of living in Nigeria.

2. To examine the impact of inflation and cost of living on economic growth in Nigeria.

3. To examine what constitutes cost of living, and how it negatively affects economic growth.

4. To recommend to monetary authorities and the government on how inflation and cost of living can be reduced to an acceptable level.

1.5 RESEARCH HYPOTHESES

To carry out the study effectively, the following proposed hypotheses have been formulated and will be tested in the course of carrying out the study:

Hypothesis I

Ho: Inflation has no significant impact on cost of living in Nigeria economy.

H1: Inflation has significant impact on cost of living in Nigeria economy.

Hypothesis II

Ho: Cost of living has no significant impact on economic growth in Nigeria.

H1: Cost of living has no significant impact on economic growth in Nigeria.

1.6 SIGNIFICANCE OF THE STUDY

The study will be useful to policy makers especially in formulating policies that will reduce inflation growth rate and ensure lower cost of living. 

The study will also be useful to monetary houses like central and commercial banks in Nigeria. Findings and recommendations from this study will be of great benefits to financial institutions in Nigeria, as the recommendations if implemented will go a long way in guaranteeing a sustainable and sound economy.

The study when carried out will also be of great benefit to student researchers who have interest in researching more into inflation and cost of living. It will act like a guide to student researchers who may find the recommendations and findings of the study when completed useful.

1.7 SCOPE OF THE STUDY

The research work will be centered on the beginning structure, operations and effect of  inflation on cost of living in Nigeria economy. The study will be for a period of thirty six years data point which is between 1982 to 2017

1.8 LIMITATION OF THE STUDY

Finance is one of the elements that assist a good research. Financial constraint created difficulties in the process of this research work, however, it did not hinder the research..  

The main limitation of this study is time constraint. The time allowed for the completion of this research is not adequate based on recent and contemporary happenings with respect to the impact of inflation on cost of living in Nigeria economy.