Unemployment, Inflation and Economic Misery in Nigeria

Nigeria is presently bedeviled by severe economic hardship which threatens the survival of many Nigerians especially the poor ones due to rising inflation. This study aims at establishing the causal link between inflation, unemployment and economic misery experienced in the Nigerian economy and thus, understand and address the complex interplay between inflation, unemployment and wellbeing of the Nigerian populace. The study used the Tado-Yamamoto Dynamic Granger Causality test approach and found that on the one hand, inflation rate and bank lending rate granger-cause economic hardship, while unemployment rate and per capita GDP growth rate have bi-directional relationship with economic hardship, on the other. The findings emphasized the dire need for structural reforms targeted at urgently improving agricultural productivity, reducing dependence on imports, and the fostering of a stable political and economic environment to improve/build investor confidence and attract the necessary investments for sustainable growth.