Selected Macroeconomic Indicators and Economic Wellbeing in Nigeria
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Abstract
This study examines selected macroeconomic indicators and economic well-being in Nigeria. It focuses on the effects of exchange rate fluctuation, inflation, balance of payments, unemployment and literacy rate in both short and long run on the well-being of Nigerians. It used econometric analysis on the annual time series data collected from both the Central Bank of Nigeria Statistical Bulletin and World Bank development indications of 2024. The findings of the study reveal that exchange rate is negative and statistically significant on the economic well-being in the long run indicating, that depreciation of the Naira reduces purchasing power and worsens economic conditions. Though inflation has a negative impact, is found to be statistically insignificant, suggesting the presence of economic adaptation mechanisms. Balance of payments was found to have positive and significant effect, demonstrating that an improved trade balance enhances economic well-being. However, unemployment and literacy rates, despite having positive coefficients, are found to be statistically insignificant. This implies that structural labor market inefficiencies and educational mismatch may limit their direct impact on economic well-being. The study concludes that macroeconomic stability, exchange rate management, trade balance improvements, and job creation strategies are essential for enhancing economic well-being in Nigeria. The study therefore made the following policy recommendations; ensuring foreign exchange stability measures, export diversification, inflation control policies, labor market reforms, and investments in infrastructure and education. Implementation of these strategies will contribute to sustainable economic growth and improved living standards for Nigerians.
JEL: 011,023,047.
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Copyright (c) 2025 Davis Ojima, PhD (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.
Davis Ojima, PhD, Ignatius Ajuru University of Education, Rumuolumeni, Port Harcourt, Nigeria.
Department of Economics,
Ignatius Ajuru University of Education, Rumuolumeni, Port Harcourt, Nigeria.
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