Unemployment and Moderating Effect of Insecurity on Nigerian Economic Growth

ABSTRACT This study examined the effect of unemployment and insecurity on Nigerian economic growth. The study proxied the independent variable with three variables namely; insecurity rate, unemployment rate and inflation rate while the dependent variable was proxied with real gross domestic product. The data used were secondary time series data for the period 1999 to 2022. The data were sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin. The relationship between the dependent and independents variables were estimated using ordinary least square (OLS) regression model. The findings from the results revealed that unemployment rate and inflation rate has negative relationship with the real gross domestic product of Nigerian economy, which contrary to expectations, the insecurity has unusual positive and significant relationship with economic growth. With the p-value of 0.0000, insecurity has significant positive effect on the Nigerian economic growth, while unemployment rate with p-value of 0.3044 has no significant negative effect on the Nigerian economic growth. Also, with p-value of 0.3296 inflation rate has no significant negative effect on the Nigerian economic growth. Thus the study concluded that unemployment has negative but insignificant effect on Nigerian economic growth. Therefore, the study recommended that governments both at the federal and state levels should design proactive and practical policies and measures to reduce the level of insecurity in Nigeria so as to guarantee save and more secured environment contribute significantly to Nigerian’s economic growth.