This study explores the complex relationship between inflation, interest rates, and economic growth in Nigeria, shedding light on how these factors influence the country’s economic trajectory and offering valuable insights for effective policymaking. Using annual time-series data from the Central Bank of Nigeria (CBN) Statistical Bulletin and the World Bank Development Indicators, covering the period from 1990 to 2023, the analysis employs techniques such as the Augmented Dickey-Fuller (ADF) test, unit root tests, co-integration analysis, and ordinary least squares (OLS). The variables considered include the economic growth rate (GRT), inflation rate (INF), interest rate (INT), foreign direct investment (FDI), and exchange rate (EXR). The findings reveal a negative relationship between inflation and economic growth, highlighting the critical need for effective inflation control. In contrast, the study finds that higher interest rates are positively correlated with economic growth, suggesting that interest rate increases may foster productive investments. Additionally, it identifies an inverse relationship between FDI and economic growth, as well as a negative effect of currency depreciation on economic performance. These insights underscore the complexity of Nigeria’s economic dynamics, calling for a nuanced policy approach. To foster sustainable growth, the study recommends a dual strategy: stringent monetary policies to curb inflation and targeted fiscal measures to stimulate growth. Moreover, establishing a stable exchange rate policy and enhancing the business climate for local industries are vital to strengthening domestic competitiveness and ensuring long-term economic resilience.