Based on linear models, the bulk of empirical studies have confirmed that large and persistent fiscal deficits are inflationary in most developing economies including Nigeria. However, non-linearity between the variables has not been a subject of consideration in empirical research. This study investigated the non-linear relationship between fiscal deficits and inflation in Nigeria from 1981 to 2015. Annual data used for the analysis were obtained from the Central Bank of Nigeria Data & Statistics, and World Development Indicators. The autoregressive distributed lag method of estimation was employed to analyse the data. The autoregressive distributed lag bounds test technique of co-integration results displayed evidence of a long-run relationship among inflation, fiscal deficit squared, real interest rates and real exchange rates. The findings revealed that, both in the long run and short run, fiscal deficit squared was positive and statistically significant, indicating the existence of a non-linear relationship between fiscal deficits and inflation in Nigeria. Furthermore, the study found that the lag (1) of real exchange rates had a negative and statistically significant effect on inflation dynamics only in the long run, while real interest rates had no effect on inflation during the period. Authorities in Nigeria should adopt a new method of debt financing to ensure fiscal consolidation that would be more effective in price stabilisation.

基于线性模型，大量实证研究证实，在包括尼日利亚在内的大多数发展中经济体中，巨额且持续的财政赤字会导致通货膨胀。然而，变量之间的非线性并不是实证研究中考虑的主题。本研究调查了 1981 年至 2015 年尼日利亚财政赤字与通货膨胀之间的非线性关系。用于分析的年度数据来自尼日利亚中央银行数据统计和世界发展指标。采用自回归分布滞后估计方法对数据进行分析。协整结果的自回归分布滞后边界测试技术显示了通货膨胀、财政赤字平方、实际利率和实际汇率之间存在长期关系的证据。研究结果表明，无论是从长期还是短期来看，财政赤字的平方都为正且具有统计意义，表明尼日利亚的财政赤字与通货膨胀之间存在非线性关系。此外，研究发现，实际汇率的滞后 (1) 仅在长期内对通货膨胀动态产生负面且统计上显着的影响，而实际利率在此期间对通货膨胀没有影响。尼日利亚当局应采用新的债务融资方法，以确保更有效地稳定价格的财政整顿。研究发现，实际汇率的滞后 (1) 仅在长期内对通货膨胀动态产生负面和统计上显着的影响，而实际利率在此期间对通货膨胀没有影响。尼日利亚当局应采用新的债务融资方法，以确保更有效地稳定价格的财政整顿。研究发现，实际汇率的滞后 (1) 仅在长期内对通货膨胀动态产生负面和统计上显着的影响，而实际利率在此期间对通货膨胀没有影响。尼日利亚当局应采用新的债务融资方法，以确保更有效地稳定价格的财政整顿。