Nigerian economic performance an indices measurement of GDP, Inflation, Unemployment and Interest rate

Stable prices, sustainable growth and low unemployment level has been the major macroeconomic goals being pursued by every developing country, Nigeria inclusive. As a result, this study sets out to investigate Nigerian economic performance, As sector by sector analysis. The study employed the ordinary least square (OLS) estimation technique in investigating this relationship as well as the Granger Causality test to check for any causal relationship among the variables. The study found out that though inflation had a negative relationship with unemployment, inflation had no significant impact on the unemployment level. Real Gross Domestic Product on the other hand was observed to have a positive relationship with unemployment and was also found to be significant in explaining unemployment in Nigeria. The causality test revealed no causal relationship between inflation and unemployment as well as between economic growth and unemployment. The study concludes that though there has been an increased economic growth (in terms of real GDP) over the years, unemployment in Nigeria has failed to reduce. This can be attributed to the Nigerian economy’s over dependence on revenue generated from the oil sector, thereby neglecting the real sectors of the economy. As a result, the study recommends that the real sector of the economy be developed so as to ensure reduction in the unemployment level as the real gross domestic product of the economy increases.