The paper investigated the impact of inflation and government agricultural policies on relative
price variability of cash crops in Nigeria using co-integration and ECM approach. The analysis was carried
out on time series data collected from 1970 to 2008. The result shows that inflation has a significant
positive impact on relative price variability in the short-run and long-run. Polices like Structural
Adjustment Programme (SAP), Post-Structural Adjustment Programme (PSAP) and Green Revolution
(GR) affected price changes that led to efficient re-allocation of resources among cash crops in Nigeria. It
is therefore recommended that long-run government agricultural policies should therefore be continued and
also, policies that would protect the agricultural sector from the impact of inflation in the short-run should
be encouraged