The evolution of Inflation can be attributed to the following
- Effect of civil war
- Planting season
- Adebo Award
- Udoji Award
- Second Republic
- Devaluation of naira.
- Structural Adjustment Programme (SAP)
EFFECT OF CIVIL WAR – This could be traced back to civil war time when some people were moving from east west to north to buy food due to scarcity and as such the northern people came to experience inflation as a result of excessive demand.
PLANTING SEASON – Inflation was experienced during this period as a result of peoples search for goods and services. It was a period of planting season just after the civil war as people then embarked on intensive cultivation all over the country. As a result of this intensive cultivation, the prices of the few goods went high due to the scarcity of goods, which could not keep pace with the increasing demand of people.
ADEBO AND UDOJI AWARD – This was a time when workers wages were increased without a corresponding increase in productivity. As a result of the low nature of production, the goods available as at then could not meet up with the high rate of demand, which was masterminded by the increase in wages, and services of workers.
SECOND REPUBLIC – This could be traced back to the Shagari regime. It was a time when people were importing goods indiscriminately and exporting in order to have a balanced balance of payment thereby making the country a dumping ground for imported goods.