The effect of inflation and exchange rate volatility on consumer buying behavior in Nigeria

This study investigates the impact of inflation and exchange rate volatility on consumer purchasing behavior in Nigeria, employing a descriptive research approach and survey data gathered via Google Forms. The findings indicate that inflation substantially diminishes consumers' purchasing power, forcing households to prioritize essential products above discretionary expenditures and use coping methods such as opting for less expensive alternatives and reducing non-essential costs. Likewise, exchange rate fluctuations increase the expenses of both imported and domestically produced items, further burdening consumer finances and modifying consumption behaviors. The study underscores the resilience of Nigerian consumers, who confront these issues through adaptive strategies, however this may have enduring consequences for financial stability and product quality. This research, based on theoretical frameworks like Purchasing Power Parity and Maslow's Hierarchy of Needs, emphasizes the essential requirement for effective economic policies to control inflation and exchange rates. The study offers significant insights for policymakers and businesses to mitigate the socio-economic effects of economic instability on consumer welfare. Keywords: Inflation, Exchange Rate, Volatility, Consumer, Nigeria.