The study examined the contradiction between poverty and unemployment in Nigeria using annual time series dataset for the period 1977-2019 drawn from Central Bank of Nigeria Statistical bulletins (2020) and World Bank Development Indicators (2020). Dickey-Fuller Generalized Least Square (DF-GLS) technique is employed to examine the order of integration, and Johansen co-integration test established the movement of the variables in the long-run. The estimated results from Ordinary Least Square (OLS) technique shows a positive and significant association between poverty and unemployment rate, while government capital expenditure and investment in human resources are negative but significant related to poverty rate in Nigeria. Further investigation using pairwise Granger causality test indicated the existence of no bilateral or unilateral causality relationship between poverty and unemployment rate in Nigeria. From the estimated OLS results, immediate policy effort to stimulate the economy through job creation, infrastructural development, human capital development and promotion of business environment could expedite growth and reduce poverty rate in Nigeria. Therefore, government should provide an enabling business environment that can drive investment in order to boost employment opportunities, so as to reduce high rate of unemployment and poverty in Nigeria.

Keywords: Poverty, Unemployment, Cointegration, Granger Causality, Least Square

Jel Classification: I30, E24, C10, C12, C29