MACROECONOMIC VARIABLES AND INCOME INEQUALITY IN NIGERIA

This study examines the impact of macro-economic variables on income inequality in Nigeria, using a multiple regression analysis. The study employs a data set covering the period1980-2020 obtained from the World Bank and the National Bureau of Statistics (NBS) of Nigeria. Themacroeconomic variables considered include GDP growth rate, interest rate, and exchange rate. The results of the study reveal significant relationships between these macroeconomic variablesand income inequality, as measured by the Gini coefficient. Specifically, the findings indicatethat GDP growth rate and inflation rate have a positive and significant impact onincomeinequality, while unemployment rate has a negative and significant impact. The study alsofindsthat interest rate and exchange rate have a significant impact on income inequality, althoughthedirection of the relationship varies. The study concludes that macroeconomic policies aimed at reducing income inequalityinNigeria should focus on promoting economic growth, controlling inflation, and reducingunemployment. Additionally, the study highlights the need for policymakers to carefullyconsider the potential impact of interest rate and exchange rate policies on income inequality. The findings of this study contribute to the existing literature on the relationship betweenmacroeconomic variables and income inequality, and provide valuable insights for policymakersseeking to reduce income inequality in Nigeria.