Numerical assessment of economic crisis on consumers purchasing power in Nigeria
Keywords:
Consumer purchasing power, Nigerian economic crisis, Second Derivative Block Adams Moulton Methods (SDBAMM), Monetary policy toolsAbstract
The uncertainties influencing consumers’ purchasing power in Nigeria and other developing economies have become recurring issues which pose serious threat to the survival of its citizens and business collaborations. Waves of instabilities in vital economic indicators significantly affect consumer purchasing power and spending decisions in the market. This study focuses on modeling the resulting impact of Nigerian economic crisis on the purchasing power of consumers using second derivative block Adams Moulton methods (SDBAMM). Following the instability display of the absolute wave errors (AWEs) of the modeled equation, the discrete schemes of partition p=4 of SDBAMM gave better and faster computational solutions than other lower partitions p=2 and 2 when compared with other applied numerical methods in literature. This study recommends that adopting stronger monetary policy tools by the Nigerian government to manage tariff uncertainty, inflation and exchange rate waves will improve consumers’ purchasing power and reduce economic fluctuations in the Nigerian markets.
References
[1] C. Chibuisi, B. O. Osu, S. O. Edeki, G. O. Akinlabi, C. Olunkwa & O. P. Ogundile, “Implementation of two-step hybrid block Adams Moulton solution methods for first order delay differential equations”, Journal of Physics: Conference Series 2199 (2022) 012017. https://doi.org/10.1088/1742-6596/2199/1/012017.
[2] T. Mennekes & H. Schramm-Klein, “Effects of crisis-induced inflation on purchasing and consumer behavior in Germany”, Journal of Retailing and Consumer Services 85 (2025) 104295. https://doi.org/10.1016/j.jretconser.2025.104295.
[3] M. Loxton, R. Truskett, B. Scarf, L. Sindone, G. Baldry & Y. Zhao, “Consumer behaviour during crises: Preliminary research on how coronavirus has manifested consumer panic buying, herd mentality, changing discretionary spending and the role of the media in influencing behavior”, Journal of Risk and Financial Management 13 (2020) 166. https://doi.org/10.3390/jrfm13080166.
[4] K. E. Israel & G. Charity, “Food inflation and the Nigerian economy: An empirical investigation”, International Journal of Research and Innovation in Social Science 8 (2024) 3455. https://doi.org/10.47772/IJRISS.2024.8110266.
[5] A. D. Gbadebo, “Food inflation and political stability: Understanding the link in Nigeria”, Jurnal Pemerintahan dan Kebijakan 7 (2025) 91. https://doi.org/10.18196/jpk.v7i1.27797.
[6] S. Lakshmanamoorthy & S. Athinarayanan, “Balancing act: exploring the relationship between inflation and consumer behavior”, Shanlax International Journal of Economics 12 (2024) 8. https://doi.org/10.34293/economics.v12i2.7194.
[7] E. Olamide, K. Ogujiuba & A. Maredza, “Exchange rate volatility, inflation and economic growth in developing countries: panel data approach for SADC”, Economies 10 (2022) 67. https://doi.org/10.3390/economies10030067.
[8] O. Olalekan, P. T. Ojuko, C. K. Nwadiwe & A. O. Ashaheme, “The effect of inflation and exchange rate volatility on consumer buying behavior in Nigeria”, International Journal of Advanced Economics 7 (2025) 191. https://doi.org/10.51594/ijae.v7i7.1990.
[9] B. E. Olusola, M. E. Chimezie, S. M. Shuuya & G. Y. A. Addeh, “The impact of inflation rate on private consumption expenditure and economic growth—evidence from Ghana”, Open Journal of Business and Management 10 (2022) 1601. https://doi.org/10.4236/ojbm.2022.104084.
[10] L. Sugiharti, M. A. Esquivias & B. Setyorani, “The impact of exchange rate volatility on Indonesia’s top exports to the five main export markets”, Heliyon 6 (2020) e03141. https://doi.org/10.1016/j.heliyon.2019.e03141.
[11] B. Akhtari, E. Babolian & A. Neuenkirch, “An Euler scheme for stochastic delay differential equations on unbounded domains: Pathwise convergence”, Discrete and Continuous Dynamical Systems Series B 20 (2015) 23. https://doi.org/10.3934/dcdsb.2015.20.23.
[12] B. E. Olusola, M. E. Chimezie, S. M. Shuuya & G. Y. A. Addeh, “Inflation and private consumption expenditure”, Open Journal of Business and Management 10 (2022) 1601. https://doi.org/10.4236/ojbm.2022.104084.
[13] A. Bahar, “Numerical solution of stochastic state-dependent delay differential equations: Convergence and stability”, Advances in Difference Equations 2019 (2019) 1. https://doi.org/10.1186/s13662-019-2323-x.
[14] E. Buckwar, “Introduction to the numerical analysis of stochastic delay differential equations”, Journal of Computational and Applied Mathematics 125 (2000) 297. https://doi.org/10.1016/S0377-0427(00)00475-1.
[15] C. Chibuisi, C. P. Ogbogbo & B. O. Osu, “Computational solution of advanced stochastic time-delay differential equations using hybrid block extended Adams Moulton methods for customers’ satisfaction when using electronic payment systems in Nigerian banks”, Ghana Journal of Science 63 (2022) 57. https://www.ajol.info/index.php/gjs/article/view/242830.
[16] B. O. Osu, C. Chibuisi & E. E. Akpanibah, “Modeling stochastic adverse effects of CBN 2023 redesigned Naira notes policy on rural farmers in Nigeria”, BAREKENG: Journal of Mathematics and Its Applications 18 (2024) 681. https://doi.org/10.30598/barekengvol18iss2pp0681-0694.
[17] C. Chibuisi, B. O. Osu, C. Granados & O. S. Basimanebotlhe, “A class of seventh order hybrid extended block Adams Moulton methods for numerical solutions of first order delay differential equations”, Sebha University Journal of Pure & Applied Sciences 21 (2022) 94. https://doi.org/10.51984/jopas.v21i1.1513.
[18] J. D. Lambert, Computational methods in ordinary differential equations, John Wiley & Sons, London, United Kingdom, 1973. https://doi.org/10.1002/zamm.19740540726.
[19] G. Dahlquist, “Convergence and stability in the numerical integration of ordinary differential equations”, Mathematica Scandinavica 4 (1956) 33. https://doi.org/10.7146/math.scand.a-10454
Published
How to Cite
Issue
Section
Copyright (c) 2026 Chigozie Chibuisi, Prisca Udodiri Duruojinkeya, Christie Yemisi Ishola, Bright Okore Osu (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.
