Abstract: This work had its main thrust as unraveling the existing relationship between unemployment and inflation rates in Nigeria. This was premised on the fact that inflation and unemployment are among the macroeconomic challenges faced by every economy, and as such is the case, it becomes sacrosanct that every country must strive to manage the dynamics between the two variables to ensure stability in the macroeeconomy. Based on the postulate of Philip’s curve, it is expected that a trade-off exists between inflation rate and unemployment rate as countries should choose either low rate of inflation with high unemployment rate or high rate of inflation with low unemployment rate.