This study has been designed to analyze the causes, effects and proffer solutions to the problems of inflation on the economy of Edo State. Oredo Local Government Area of Edo State was used as a case study. The research study was undertaken with the aim of providing lasting solutions which will help the public and private sectors of the economy to be combat ready to eradicating inflation. In the process of carrying out this study, questionnaires were administered to elicit responses from respondents in four locations. To enhance the effective implementation of the study, three (3) hypotheses were formulated, they include:

1.    Inflation occurs when demand is greater than the supply of goods and services. 

2.    The financial indiscipline of the government is directly related to the inflationary position of the economy of Edo State.

3.    The devaluation of the Nation’s currency (naira) has a negative effect on the economy.

The data collected were analyzed and interpreted. The findings were converted into simple percentage as shown in the tables. The hypotheses were conceived on the basis of the findings. The alarming inflationary trend in Edo State has taken over the economy. The naira has lost its value in the labour market, prices of goods and services are on the increase life has become meaningless, worthless, and miserable for the masses. It is therefore important for all hands to be on deck to arrest the ugly trend of inflation in Edo State. The government and the citizens should join hands together to fight the malaise and cankerworm of the ugly trend of inflation in Edo State having achieved this; it will become an economic landmark of advancement, progress, development and breakthrough in all ramifications.




Chapter One

1.0         Introduction

1.1         Statement of problem

1.2          Objective of the study

1.3         Hypothesis

1.4         Significance of the study

1.5         Limitation of study

Chapter Two       

2.0         Literature Review

2.1         Meaning of inflation

2.2         Theories of inflation

2.3         Effects of inflation of Edo State economy

2.4         Control of inflationary trend in Edo State

Chapter Three

3.0         Methodology

3.1         Research design

3.2         Population of the study

3.3         Sample of the study

3.4         Sampling technique

3.5         Research instrument

3.6         Data analysis

Chapter Four

4.0         Discussion of results

4.1         Presentation and analysis of data

4.2         Presentation of analysis

Chapter Five

5.0         Summary of findings, Recommendations and Conclusion

5.1         Summary of findings

5.2         Findings 

5.3         Recommendation

5.4         Conclusion






          Inflation can be defined as persistent rise or increase in the general level of price. Inflation is an economic situation whereby so much money is chasing few goods. It is a problem which affects every country of the world especially developing countries like Nigeria which goes a long way to affecting the states. Inflation is the most serious problem prevailing I our economy today, which seems to be assuming an economic epidemic dimension. As everybody is struggling to survive, prices of goods and services are at a rapid alarming rate of increase. The historical perspective of inflation can be narrowed down to the 1950s and 1960s. a decade before this period was the general inflationary period in the world. It was at its peak in the 1960s when the Nigeria civil war ended as all the resources of the nation were diverted towards the production of arms and ammunitions (weapons of war). Able bodied men who would have engaged in farming were as a result of this, the agricultural sector of the economy suffered, thus the few available goods were distributed in favour of those in the upper class.

          The product of this was unemployment that starved thousands of youths since industries were shut down. There was a considerable increaser in government expenditure which was not equated with taxation as many of the working age were unemployed. Consequently, government had to pay a large part of the expenses by minting (creating/printing) more money and borrowing from banks. Thus the volume of money in circulation increased without no corresponding increase in goods and services. We all now feel the bite since food and non-food items have continued to increase, some consumers notable the poor feel the effect most. Most households in Edo State are made up of low income earners who have to contend with the continuing inflationary trend. Hence, there is need to study and provide a pragmatic solution from the basis of this research.


          Inflation is undesirable. This is due to its negative and disastrous effects on our economy since both the rich and poor are suffering from it as cost of living is high. This study intends to investigate the causes and effects of inflation in Edo State. The following questions are intended to be provided with answers from this study:-

1.    To what extent has inflation put miserly, anguish and pain in the face of the masses in Edo state?

2.    In what way does the persistent fall in purchasing power of a unit of nation’s currency causes inflation?

3.    Does the government contribute in any way to the inflation being experienced in Edo State?

4.    Could scarcity of goods lead to high prices?

5.    Could inflation be as a result of too much money in circulation i.e. increase in supply of money?


          The objectives of the study are as follows:-

1.    To ascertain the effects of inflation on the economy of Edo State.

2.    To determine the effects of inflation on Edo people.

3.    To ascertain the various measures of controlling inflation.


          For the purpose of this study, the following hypotheses have been designed:-

1.    Inflation occurs when demand is greater than the supply of goods and services.

2.    The financial indiscipline of the government is directly related to the inflationary position on the economy of Edo State.

3.    The devaluation of the nation’s currency (naira) have a negative effect on the economy.


          This study is unique because it is going to be useful to both the rich and poor. The significance of this study therefore is based on its attempt to make both the general public and government see the need to contribute their own quota to the fight against inflation. When the solutions are proffered, policy makers as well as the government will know what decision to take as regarding inflationary problems. The researcher therefore hope that this research work will enlighten and open the eyes of both the citizens and government to see the areas where they have consciously or unconsciously aided inflation, thus finding solutions to inflationary problem as there is no problem without solution. The study will therefore critically x-ray the causes, effects and possible remedies to inflationary trend in Edo State.


          The scope of this study for the purpose of this research will pose its attention on Edo State considering the causes, effects and possible solution of inflationary trend and how it affects the people of Oredo Local Government Area in Edo State. The scope of this study will focus its attention on market women, street traders, civil servants and students in Oredo Local Government Area of Edo State.


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