@article {10.3844/jssp.2024.28.44,
article_type = {journal},
title = {Monetary Policy, Sub-National Inflation Dynamics and Regional Spillovers in Nigeria},
author = {Nwosu, Chioma Peace and Akpan, Usenobong Friday},
volume = {20},
year = {2024},
month = {Jul},
pages = {28-44},
doi = {10.3844/jssp.2024.28.44},
url = {https://thescipub.com/abstract/jssp.2024.28.44},
abstract = {This study evaluates the relationship between monetary policy shocks and sub-national inflation dynamics in Nigeria, using the SVAR framework. Furthermore, using the Diebold-Yilmaz (DY) methodology, it also examines the extent of inflation volatility spillovers among the regions. Results show that monetary policy shock generates a heterogeneous but insignificant influence on sub-national inflation in Nigeria. We also found substantial evidence of spillovers among the regions. The South-West, North-East and South-East regions were found as the only resilient regions and net transmitters of inflation volatility to other regions, while the South-South was the most vulnerable region, especially to shocks from the South-East. These findings suggest that an exogenous monetary policy shock is not sufficient to address sub-national inflation dynamics in Nigeria. Rather, a well-targeted policy may be required to address the challenge, including strengthening inter-regional network connectivity and addressing persistent insecurity challenges that have stamped its roots in the North-East and South-East regions.},
journal = {Journal of Social Sciences},
publisher = {Science Publications}
}