Browsing by Author "Haliru, Nurudeen Olushola"

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    Economic Diversification and Price Stability in Nigeria
    (Department of Finance, Ekiti State University, 2025-03-31) Etudaiye-Muhtar, Oyebola Fatima; Etudaiye-Muhtar, Bilal Enesi; Haliru, Nurudeen Olushola
    This study explores the dynamics of price stability in Nigeria between 1991 and 2022, focusing on the critical role of economic diversification. Using an Autoregressive Distributed Lag (ARDL) model, this study analyses the short and long-run dynamics. In the short run, the findings reveal that past price stability positively influences current stability, while investment tends to destabilize prices. Non-oil gross domestic product, in the long run, positively influences price stability, therefore suggesting that economic diversification can contribute to greater stability. However, the study finds that non-oil exports, investment, and the exchange rate negatively impact price stability, implying that while these factors may boost economic activity, they also introduce volatility. The findings underscore the need for Nigerian policymakers to focus on diversifying the economy, managing exchange rate volatility, and crafting targeted investment policies to enhance long-term price stability.