ABSTRACT

There is a general consensus that high Inflation rates and population growth cause problems for aggregate economic performance, although there is much less agreement about the relationship between Inflation, interest rate and economic growth and how it affects economic activities at the macroeconomic level. This research work presents an empirical analysis of Population Growth, Inflation Rate on Nigeria Economy. The research work made use of secondary data collected from Central Bank of Nigeria’s Statistical Bulletin. The empirical measurement covers the sample period between 1982 -2015. This has generated a significant debate both theoretically and empirically. This research aims to investigate of population growth and inflation rate on the economic growth of the Nigerian economy. We use the Ordinary Least Square Method to analyze our data. The result of the study shows that Population growth rate had a negative but insignificant effect on economic growth in Nigeria while inflation rate on the other hand had a negative significant effect on economic growth in Nigeria implying that high inflationary pressures shifts economic growth in Nigeria. We recommend that for Nigeria to achieve sustainable economic growth there is need for government to ensure low and stable price at all times. Hence, when designing economic growth policies critical attention should be given to inflation.