Macroeconomic Indicators and Economic Progress in Nigeria

Mathew Oluwaseun ADEAGBO Ph. D; Wasiu Olalekan ABIMBOLA Ph. D

doi:10.56201/ijebm.vol.12.no2.2026.pg180.196

📄 Download Paper

Macroeconomic Indicators and Economic Progress in Nigeria

Mathew Oluwaseun ADEAGBO Ph. D, Wasiu Olalekan ABIMBOLA Ph. D

Abstract

The main goal of any nation in the world is to sustain the growth of their economy and achieve development. This they plan to do by ensuring full employment of resources, stable exchange rate system, stable pricing system of goods and services, balance of payment equilibrium, maintenance of external reserves, and many more through various macroeconomic variables. However, scholars have conflicting opinion on the importance of these macroeconomic variables in this regards. To this end, this study sets to examine the effect of these macroeconomic variables on economic progress in Nigeria using quarterly data that covers 1995Q1 to 2025Q2. The data collected were analyzed using Augmented Dickey-Fuller test after confirming the presence of mixed order of integration. Various robustic checks were also carried out to standardize the findings of this research. From the result it was established that only foreign direct investment presents a positive and statistically significant effect on economic progress in Nigeria, though some other included variables also have positive effect but their effects are statistically insignificance. Based on the above, it was therefore recommended, among others, that Nigerian government should strive to sustain and increase the flow of FDI into the country, formulate policies that will bring about exchange rate appreciation and reduce the volatility of the exchange rate. Key words: Exchange Rate, Foreign Direct Investment, Inflation Rate, Money Supply, Nigeria. JEL Classification: E61, E66, F45, O11.

Keywords

Exchange RateForeign Direct InvestmentInflation RateMoney SupplyNigeria. JEL Classification: E61E66F45O11.

References

Adeniyi, A. P., & Olasunkanmi, A. O. (2019). Impact of exchange rate volatility on economic growth in Nigeria (1980 - 2016). International Journal of Management Studies and Social Sciences Research, 1, 6 – 14. Adenomon, M. O., & Ojo, R. O. (2020). Autoregressive Distributed Lag modeling of the effects of some macroeconomic variables on economic growth in Nigeria. Folia Oeconomia Stetinensia, 20, 1 – 19. https://doi.org/10.2478/foli-2020-0032 Ajide, K. B., & Lawanson, O. (2010). Inflation thresholds and economic growth: Evidence from Nigeria. Asian Economic and Financial Review, 2, 876 – 901. Anochie, U. C., Okereafor, G., & Bashir, M. O. (2023). Macroeconomic variables and productivity of Nigeria’s manufacturing sector. Nigerian Journal of Management Sciences, 24(1), 244 - 254. Baran, K. A. (2021). The impact of macroeconomic and institutional factors on economic growth in the CEE-4 countries. Journal of Economics and Financial Analysis, 4, 1 – 26. Chowdhury, A. H. M. Y., Hamid, M. K., & Akhi, R. A. (2019). Impact of macroeconomic variables on economic growth: Bangladesh perspective. Information Management and Computer Science, 2, 19 – 22. Damieibi, I. J., Ihenetu, H. I., & Amadi, C. E. (2021). Macro-Economic variables and economic growth in Nigeria. European Modern studies Journal, 5(4), 10 -17. Ehikioya, B. I. (2019). The impact of exchange rate volatility on the Nigerian economic growth: An empirical investigation. Journal of Economic and Management, 37, 45 – 68. Etale, L. M., & Imbazi, L. I. (2020). Influence of selected macroeconomic variables on economic growth in Nigeria (1999 - 2018). Advances in Social Sciences Research Journal, 7(8), 315 – 325. Fitriady, A., Silvia, V., & Suriani, S. (2022). The impact of macroeconomic variables on the real economic growth in Indonesia. International Journal of Global Optimization and Its Application, 1, 70 – 79. Ibrahim, W. O. (2016). Real exchange misalignment and economic growth in Nigeria (1960 - 2011). CBN Journal of Applied Statistics , 7, 93 – 110. Musa, K. S. (2019). Foreign exchange and economic growth nexus: New evidence from Nigeria (1981 to 2017). Foreign Exchange, 10, 145 – 156. Mustapha, A. O., Mathew, I. E., & Oluwaseun, R. A. (2017). The effect of macroeconomic indicators on economic growth of Nigeria 1970 – 2015. American Journal of Theoretical and Applied Statistics, 6(6), 325 -334. Nwafor, M. C. (2018). Effect of naira rate on economic growth in Nigeria. IIARD International Journal of Banking and Finance Research, 4, 58 – 66. Olalekan, J. S., & Kamoru, J. (2021). Effect of selected macroeconomic variables on the Nigerian economy. International Journal of Advanced Research, DOI:10.21474/IJAR01 Onyeka, O. M., & Nduka, J. E. (2022). Effect of selected macroeconomic variables on the Nigerian economy, 1987 - 2020. International Journal of Business and Law Research, 10(3), 84 – 96. Oshodi, B. A. (2018). Analysis of macroeconomic indicators on economic growth: Empirical studies of Nigeria and China. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3358697. P-ISSN 2695-186X Reddy, T. A., & Henze, G. P. (2023). Analysis of time series data. In Applied Data Analysis and Modeling for Energy Engineering and Scientists, Pp.309-353. Springer International Publishing. Ubaka, I. E. (2016). The effect of macroeconomic indicators on economic growth in petrol-dollar economy: The Nigerian experience. International Journal for Innovative Research in Multidisciplinary Field, 2(10). Vincent, C. (2015). The Impact of Macroeconomic Variables on Economic Growth: A Panel Data Analysis of Selected Developing Sub-Saharan African Countries, Master Thesis, University of East London.

Macroeconomic Indicators and Economic Progress in Nigeria

Abstract

Keywords

References

More Articles from IIARD INTERNATIONAL JOURNAL OF ECONOMICS AND BUSINESS MANAGEMENT