ABSTRACT

The study investigated the effect of macroeconomic variables on economic growth in Nigeria from 1990 to 2021. The macroeconomic variables used for the study were exchange rate, inflation rate, interest rate and unemployment rate while economic growth was measured by the gross domestic product. The tool used for the data analysis was the multiple regression technique. The findings from the analysis showed that exchange rate, interest rate and unemployment rate had negative and significant effect on gross domestic product in Nigeria while the effect of inflation rate was positive and insignificant. The coefficient of determination of the regression indicated that the selected macroeconomic variables collectively explained approximately 89% of the variations in gross domestic product which is in consonance with the Mckinnon and Shaw theory. Therefore, the study concluded that macroeconomic variables exert significant effect on gross domestic product in Nigeria. Based on these findings, effective management of the macroeconomic of Nigeria through effective exchange rate and interest rate control as well as training for youths to acquire requisite skills to engage in economically productive activities were recommended.