MACROECONOMIC

This study investigates the impact of macroeconomic stabilization policies on inflation in Nigeria, with particular emphasis on the combined roles of monetary and fiscal policy measures in
promoting price stability. Nigeria’s inflationary pressures; largely influenced by structural challenges, exchange rate fluctuations, fiscal imbalances, and rapid growth in money supply, have prompted repeated policy responses from both the government and the Central Bank of Nigeria (CBN). The study adopts a quantitative research design and utilizes annual time-series data obtained from the CBN, National Bureau of Statistics (NBS), and the World Bank. TheAutoregressive Distributed Lag (ARDL) model is employed to assess the short-run and long-run Effects of key stabilization policy variables, including money supply, GDP, exchange rate, government expenditure, oil price on inflation. The findings indicate that monetary policy variables, especially money supply and interest rate, exert significant long-run influence on inflation, while fiscal policy indicators show mixed but relevant effects depending on the policy environment. The study concludes that although stabilization policies have contributed to reducing inflationary pressures, their overall effectiveness is still hindered by structural weaknesses and inadequate coordination between fiscal and monetary authorities. It therefore recommends enhanced policy synergy, improvedtransparency in policy execution, and structural reforms aimed at strengthening the capacity of stabilization policies to achieve sustained price stability in Nigeria.