Inflation and market value of listed consumer goods companies in Nigeria

Authors

  • Oyewole Oladunni Ajiboye Department of Accounting, College of Business and Management Studies, Igbinedion University, Okada, Edo State. Nigeria
  • Yemisi Funmilayo Bosun-Fakunle Department of Accounting, College of Business and Management Studies, Igbinedion University, Okada, Edo State. Nigeria

DOI:

https://doi.org/10.33003/fujafr-2026.v4i3.423.496-510

Keywords:

Supporting Cost-Push Inflation Theory, inflation and exchange rate movements drive valuations, requiring CGC to manage cost pressures and currency risks

Abstract

Purpose: This study examined the effect of inflation on market value of listed consumer goods companies in Nigeria.

Methodology: An ex-post facto research design was adopted, using secondary data obtained from the annual reports of CGC listed on the Nigerian Exchange Group (NGX), publications of the Central Bank of Nigeria and the National Bureau of Statistics, covering the period 2012–2024. The population consists of all 21 CGC listed. Applying a filter sampling technique, a final sample of 18 firms was selected. Multiple data regression was employed to analyse the data collected.

Results and Conclusion: The findings revealed that inflation rate has a negative and significant effect on share price, indicating that rising inflation reduces investor confidence and firm value. Interest rate has negative and insignificant effect on share price of CGC in Nigeria, suggesting a weak influence on market value during the study period. Exchange rate exhibited a positive and significant effect on share price, implying that exchange rate movements significantly influence stock market performance. GDP growth had a positive and insignificant effect on share price of listed CGC in Nigeria, indicating that economic growth alone does not strongly determine firm valuation in the consumer goods sector. The study concluded that inflation significantly influences the market value of listed CGC, with inflation rate and exchange rate emerging as the major determinants of share price movements.

Implication of findings: Supporting Cost-Push Inflation Theory, inflation and exchange rate movements drive valuations, requiring CGC to manage cost pressures and currency risks.

Author Biographies

  • Oyewole Oladunni Ajiboye, Department of Accounting, College of Business and Management Studies, Igbinedion University, Okada, Edo State. Nigeria

    Lecturer II

  • Yemisi Funmilayo Bosun-Fakunle, Department of Accounting, College of Business and Management Studies, Igbinedion University, Okada, Edo State. Nigeria

    Senior Lecturer

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Published

30-09-2026

Issue

Vol. 4 No. 3 (2026): September 30, 2026

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Articles

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Copyright (c) 2026 Oyewole Oladunni Ajiboye, Yemisi Funmilayo Bosun-Fakunle

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How to Cite

Ajiboye, O. O., & Bosun-Fakunle, Y. F. (2026). Inflation and market value of listed consumer goods companies in Nigeria. FUDMA Journal of Accounting and Finance Research [FUJAFR], 4(3), 496-510. https://doi.org/10.33003/fujafr-2026.v4i3.423.496-510

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