Asymmetric Impact of Oil Price on Inflation in Nigeria

This study examines the impact of oil price shocks on inflation in Nigeria. A NonLinear Autoregressive Distributed Lag (NARDL) approach was applied quarterly data spanning 1999Q1 to 2018Q4. Results showed that increases led increase headline, core and food measures However, a decline resulted marginal cost production culminated moderation domestic inflation. Furthermore, negative higher Nigeria when exchange rate is dropped from models, indicating absorbed declines earlier, as lower prices external reserve, depreciation naira ultimately inflationary pressures. Also, tends respond more than These results were robust changes econometric specifications sample period. The recommends monetary policy actions Central Bank should focus taming periods substantial while strengthening its efforts at ensuring sustainability through agricultural intervention programmes further minimize international Similarly, fiscal authorities ensure stance not excessively procyclical rising prices.