ANALYSIS OF THE IMPACT OF INFLATION AND UNEMPLOYMENT ON ECONOMIC GROWTH IN NIGERIA (1991-2022)

This study is examined analysis of the impact of inflation and unemployment on economic growth in Nigeria impact of agricultural sector performance on economic growth in Nigeria from 1991.- 2022. To achieve the objectives of this study, multiple regression and Granger causality model was formulated and estimated, using Autoregressive Distributed Lag Model. The results suggest that the direction of causality is from GDP to INF It showed that an increase in Gross Domestic Product increases the inflation in Nigeria hence, but Inflation does not Granger cause GDP. There is an inverse relationship between unemployment and economic growth. A reduction in unemployment will lead to an increase in economic growth but an increase in unemployment will reduce the economic growth. The result further shows that the coefficient of determination (R2) showed the percentage of variations in the dependent variable that can be explained by, the independent variables. The R2 of 0.999684 or 99% showed that Economic growth and be explained by changes in the explanatory variables as shown in the model and the remaining 1 % is explained by the dummy variable which assumes a given relationship between variables. The study shows that agriculture contribute to economic growth significantly within the study period The study concludes that inflation, unemployment can only cause less harm to economic growth when properly manage. Otherwise, it will result to complete negative effect on the economy. The study recommends among other things that government at all level should ensure Suitable rural infrastructure development which is capable' of sustaining employment and reducing inflation thereby leading to high economic