Analyzing the Effect of Money Supply, Exchange Rate and Inflation Rate on Nigerian Per Capital Income

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Authors: ADJARHO-EKU, Ese Faith, DAUDU Omiose Eugene and OLUFEMI, Oghogho Gina

Abstract

The study determined the effect of money supply, exchange rate and inflation rate on per capital income in Nigeria from 1999 to 2023. The specific objectives are to; determine the effect of money supply on per capital income in Nigeria, ascertain the extent exchange rate affect per capital income in Nigeria and evaluate the effect of inflation rate of per capital income in Nigeria. The data were generated via International Monetary Fund and Central Bank Statistical Bulletin. Data were analyzed with descriptive statistics and hypotheses were tested using multiple regression analysis. The study found that money supply and inflation rate have significantly affected per capital income in Nigeria, while exchange rate has not significantly affect per capital income in Nigeria.  Conclusively, the study reported that the money supply, exchange rate and inflation rate have been effective short run and long run policy devices that basically influenced per capita income in Nigeria. Based on the findings, the study recommended among others that the Federal Government her agencies should regulate the level of money supply to uphold its positive effect on per capita income in Nigeria and in such a way improve in the real productive sectors in Nigeria for improved per capita income in Nigeria.

Keywords: Money supply, Exchange rate, inflation rate and Per capital income.

2025 - NIJAF - 17 - 108 ADJARHO-EKU ET AL..pdf

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