Statistical Examination of Unemployment and Poverty Rates in Nigeria using Multiple Regression Analysis (2011 – 2025)
Keywords:
Poverty Rate, Unemployment Rate, Inflation Rate, Literacy Rate, Multiple Regression AnalysisAbstract
The study analyzed the impact of unemployment rate on poverty rate in Nigeria during the years 2011–2025 through multiple regression analysis. In this study, the focus was laid on determining the impact of inflation rate, unemployment rate, and literacy rate on poverty rate in Nigeria. Secondary data related to time series were gathered from World Bank Development Indicators, IMF Country Reports, Central Bank of Nigeria Statistical Bulletin, and National Bureau of Statistics. Ex-post facto research design and Ordinary Least Squares (OLS) regression analysis technique were used in this study. It was found that inflation rate and literacy rate positively affected poverty rate, whereas unemployment rate positively affected poverty rate but insignificant. It was observed that the result of the regression model was highly explanatory as the R² value obtained in the study was 0.974, which meant that 97.4% of the variations in poverty rate were caused by the independent variables. This study concludes that macroeconomic instability and labor market issues are major determinants of poverty in Nigeria. It was suggested that there should be efficient control of inflation rate, and more employment opportunities should be created to alleviate poverty in Nigeria.
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