“…Again, the inflation rate was significantly reduced by 76.5% during the periods 1996-2000, and 69.7% for the periods 2006(CBN Statistical Bulletin, 2009, 2012.These inflation reductions impose a cost to the economy in terms of output lost. Several studies (Belke & Böing, 2014;Dramani & Thiam, 2012;Daniels & VanHoose, 2004;Cecchetti & Rich, 2001;Muñoz-Torres, 2005;interalia) have succulently demonstrate that the sacrifice ratio differs considerably among countries, yet this is unknown for Nigeria.As further enunciated by Daniels & VanHoose (2004) and Dramani & Thiam (2012), it is possible to reduce the size of the sacrifice ratio without a corresponding increase in the rate of inflation. This has made this study apt to ascertain what Nigeria's sacrifice ratio could be after many successful inflation reductions over the years.…”