The research work is centered on unemployment and inflation in Nigeria. Its main objective was to ascertain if the trade-off thesis holds in Nigeria. To achieve this, various data on unemployment and inflation were collected from 1988-2013, also other variables such as government expenditure, interest rates, and the gross domestic product were included. The result of the test revealed that unemployment and inflation are inversely related, thus confirming the existence of the Phillips curve in Nigeria, with inflation having a significant impact on unemployment in Nigeria. The work recommended that; Government should strive to develop the agricultural sector, Massive investments should be carried out in the real sector, free flow of information between employers and employees should be enhanced and that special attention be given to policy implementation.
