Accounting implications of oil price, interest rate and unemployment on Nigeria economic growth

Abstract

Holding other variables constant, Exchange rate and unemployment is supposed to have an inverse relationship, is this really the case in Nigeria economy? Do oil price affect unemployment in Nigeria? Our study analyzed the accounting implications of oil price, interest rate and unemployment on Nigeria economic growth using data from 1981 to 2019 using ARDL and VEC model, our finding reveled that all variables have a short and long term association and are statically significant, hence we recommended Better economy policy should be put in place by government to curb unemployment because this have a long and short run implication on GDP, and if not properly managed can lead to economic and social vices; The government should formulate policy that are economically friendly in order to encourage local production to boost our export and improve our local currency (Naira) such that as exchange rate increase local production and firms, this will create employment opportunities for our teaming populations; and Increased in the oil price has really helped in boosting our GDP, however the economy should be diversify because any drastical drop in our oil price will definitely affect our GDP drastically both in the short and long run.