Inflation and Monetization of Fringed Benefits: The Nigerian Experience

This paper examines inflation and monetization of fringe benefits in Nigeria. It aimed to find out the relationship between monetization of fringe benefits and the direction of inflation rate. The study adopts descriptive method of analysis on data collected from textbooks, journals, thesis and statistical figures. Findings revealed that monetization of fringe benefits was a welcome development in improving the life of workers and reducing waste in governance, it however has relationship with inflation. It was found that recurrent expenditure which measures government’s expenses on monetization policy has relationship with inflation. It concludes that where monetization is not effectively managed, its value will be of no worth in the future. The study recommends that the problem of inflation should remain the topmost agenda of the government and Central Bank of Nigeria. Government should ensure fiscal discipline on monetization policy.