EFFECT OF SELECTED MACROECONOMIC VARIABLES ON THE PERFORMANCE OF NIGERIA ECONOMY

Background to the Study

For what reason do a few nations go through quick abundance development in the only remaining century while others stay buried in neediness? For what reason do others have high inflation rates and others hold costs stable? For what reason do downturns and melancholies, repetitive times of declining compensation and expanding joblessness sway all nations? Also, how do government approaches decline the recurrence and force of the scenes recorded previously? Factors of macroeconomics, endeavors to address these inquiries and furthermore a few comparative inquiries. To comprehend the essentialness of these large scale financial components, what you have to do is perused the paper or tune in to the radio. We will see features, for example, declining pay development, obliging inflationary developments, or dropping stocks in recessionary feelings of trepidation. While these macroeconomic occasions can sound theoretical, they have an impact on our entire lives. Business administrators who predict interest for their items can figure how quick their customers' wages will develop. Senior residents living on ensured livelihoods questioning how quick rates can develop. New college understudies searching for occupations are sure that the economy is blasting and that organizations are recruiting. Since Status of the economy is troubling everybody.

Antwi et al (2013) thought that macroeconomic hypothesis has perceived different reasons that influence the development of a predefined country from the neoclassical Keynesian and the new development speculations. These factors thusly incorporate financing cost, unfamiliar direct venture, GDP per capita, speculation, normal assets, human resources, advancement, innovation, monetary arrangements, legislative components, unfamiliar help, exchange straightforwardness, institutional structure, political elements, atmosphere, socio-social variables, demography, and so on Financial development is the essential focal point of each nation's macroeconomic arrangement, and the Gross Domestic Product (GDP) is viewed as a center pointer of this monetary development. In the event that a country's GDP is rising quicker than its populace, it implies that that nation's GDP per capita is rising, it additionally suggests that individuals are living. Conditions are likewise being improved in that specific nation. The GDP of a nation is controlled by quantities of factors i.e conversion scale, unfamiliar direct venture, inflation, lending rates, family utilization and so forth Regardless, it is exceptionally hazardous to neglect the example of money related development totally to the market powers as an outcome of the budgetary misfortune expected to emerge in the creation stage. Second, the Government's quality and its financial arrangements matter a lot. The fundamental scholars and opportune defenders of advancement financial aspects were of the view that progress ought to be disguised. Advancements on the planet's business sectors have exhibited that it is inconsequential for economies to stay isolated from the inexorably coordinating world, Essien and Bawa (2007), financial development is a key approach objective for every country. Specialists and strategy policymakers likewise expected to pick from or blend every one of the macroeconomic components while examining explicit financial administration issues. Monetary thriving, the Gross Domestic Product (GDP) intermediaries, has numerous favorable circumstances, remembering an improvement for the general personal satisfaction of the nation as determined per capita public riches, making the progression of cash simpler to accomplish, building up a timetable for the satisfaction of essential human requirements for a larger part of the populace.

Nigeria's monetary improvement has not been completely valued and has been abused. Nigeria's whole financial achievement has been unsuitable since freedom in 1960. Regardless of the accessibility and speculation of huge unfamiliar trade, to a great extent because of its oil and gas holds, financial development has been languid and destitution rates have increased. Up to this point the primary difficulties looked by the Nigerian economy have brought about varieties in GDP. Is Nigeria's over-dependence on unrefined petroleum sends out? This has huge repercussions for the Nigerian economy since it is a profoundly serious oil field. For instance, due to its dependence (mono-economy) on raw petroleum sends out, the Nigerian economy was presented to the changes and impulses of the worldwide oil market, with the end goal that stuns in the homegrown economy were quickly felt at global oil costs.

In any case, the absence of satisfactory homegrown capital, reserve funds and speculation to help and support the area is a significant hindrance of financial development in the nation because of the uniqueness among investment funds and venture (Imimole and Imoughele (2012). Reserve funds gives plentiful speculation assets to arising nations (counting Nigeria) that help monetary development and creation. Expanded investment funds will prompt an expansion in capital arrangement and creation, which will prompt employment development and abatement unfamiliar gaining by the public position. Low local saving rates amounts to low-development levels. After autonomy in 1960, the quick test that confronted the Nigerian economy was the way to increment strong financial development all together lessen outrageous destitution, improve medical services, conquered ignorance, uphold vote based and political consistency, upgrade the nature of the regular habitat, decrease the event of wrongdoing and viciousness, and become a venture end of decision for global capital, ceteris paribus. Long haul, wide based financial advancement is fundamental to Nigeria's pay development and to its capacity to turn into a significant exchanging and exchange accomplice the world. Cash gracefully and a low inflation rate are key elements for a high monetary development rate that is equipped for producing work openings, neediness decrease, higher per capita livelihoods and an expectation for everyday comforts that finishes in financial development (Phibian, 2010).

The achievement of this macroeconomic goal has been in vain in Nigeria for a number of years. It can be due to a lack of good understanding of the relationship between variables. It is therefore essential to consider the causal correlation between the supply of money and the price of production, as well as their relationship. Economic policies and economic goals tended to be deceptive and inconsistent as a result of mismanagement/misappropriation. Upward inflation, low living standards, youth unrest, militancy in the Nigerian Delta region, over-reliance on foreign institutions, inadequate Gross Domestic Product Index (GDP) infrastructural facilities and epileptic power supply, to name but a few. In other words, economic policies have not been effectively channeled to areas where they should have benefited Nigerian people the most. Fiscal policy is also expected to lead to higher macroeconomic goals such as economic growth, price stability, full employment and balance of payments. This cannot be done without adequate monitoring, the strengthening of intergovernmental fiscal coordination, the promotion of the macroeconomic stability of some factors, including the control of aggregates in fiscal policy.