Economic orthodoxy insists that stable, low inflation is the bedrock of long-term growth. For Nigeria, however, the historical record tells a more complicated story. In 2010, when the country posted an impressive 8 percent GDP expansion, the kind of headline number that policymakers still dream about, inflation was running at nearly 14 percent. The mid-2000s, often celebrated as Nigeria’s “boom years,” also saw double-digit inflation for much of the time. Between 2004 and 2008, growth averaged about 7 percent annually, even though consume
Economic orthodoxy insists that stable, low inflation is the bedrock of long-term growth. For Nigeria, however, the historical record tells a more complicated story. In 2010, when the country posted an impressive 8 percent GDP expansion, the kind of headline number that policymakers still dream about, inflation was running at nearly 14 percent. The mid-2000s, often celebrated as Nigeria’s “boom years,” also saw double-digit inflation for much of the time. Between 2004 and 2008, growth averaged about 7 percent annually, even though consume