Unemployment remains a significant challenge in Nigeria, hindering both economic and social progress. This study investigated the impact of monetary policy on reducing unemployment in Nigeria, using data from 1990 to 2022 sourced from the World Bank Development Indicators and the Central Bank of Nigeria’s Statistical Bulletin (2023). The analysis, conducted through the Ordinary Least Squares (OLS) technique, confirmed co-integration among the variables, as demonstrated by the Johansen co-integration test at a 5% significance level. The findings revealed that interest rates, exchange rates, and inflation had minimal impact on unemployment, while the money supply showed a significant positive relationship with rising unemployment. This indicated that although an increased money supply might initially stimulate economic activity, it eventually contributed to inflation and higher unemployment. Based on these results, the study recommended tighter monetary policy measures to manage the money supply effectively. It also suggested further research to explore the mechanisms through which the money supply affected unemployment, enabling more targeted policy interventions.