A CRITICAL ANALYSIS OF POVERTY, INEQUALITY, AND UNEMPLOYMENT TRENDS IN NIGERIA

This study explores the complex interplay between poverty, inequality, and unemployment in Nigeria, focusing on the relationships among these three crucial socio-economic factors. Persistent issues of poverty, widespread inequality, and high unemployment rates significantly impede Nigeria's development, creating a cycle that reinforces these challenges. The research employs the Granger causality test to examine the directional influences between these variables, providing empirical evidence of their interconnections. The Granger causality test results indicate a significant bidirectional causality between poverty and unemployment. This suggests that not only does high unemployment increase poverty levels, but poverty also perpetuates unemployment by limiting access to education and skills development. Additionally, the analysis reveals a unidirectional causality from inequality to unemployment, indicating that growing income inequality exacerbates unemployment by restricting economic opportunities and access to resources for disadvantaged groups. Conversely, the causality from unemployment to inequality is less pronounced, suggesting that while unemployment does contribute to inequality, its impact is moderated by other factors such as policy measures and social support systems. The findings highlight the need for integrated policy approaches that address poverty, inequality, and unemployment simultaneously. Focusing solely on reducing unemployment may be insufficient if it does not also address the root causes of poverty and inequality, and vice versa. The study concludes that a comprehensive strategy, informed by the bidirectional relationships among these variables, is crucial for breaking the cycle and promoting sustainable development in Nigeria. By using insights from the Granger causality test, policymakers can better design interventions to achieve more equitable and inclusive economic growth.