This paper examines the effect of Naira depreciation on household welfare in Nigeria, measured by household consumption expenditure. Using annual time series data from 1989 to 2024 sourced from the Nigeria Bureau of Statistics, the study adopts an ex-post facto research design. The analytical framework comprises descriptive statistics, correlation analysis, unit root tests, Johansen cointegration, and regression estimation. The results show that exchange rate depreciation has a positive and statistically significant effect on household consumption expenditure, with a coefficient of 1.4336 (p = 0.0000), indicating high responsiveness of household welfare to exchange rate movements. Inflation exerts a negative and significant effect on welfare (−0.3040, p = 0.0029), consistent with erosion of real purchasing power. Unemployment displays a positive and significant coefficient (1.2079, p = 0.0101), which may reflect household coping or income‑adjustment strategies. The model explains approximately 89.96% of the variation in household consumption (R² = 0.8996), and the overall model is statistically significant (F = 95.53, p = 0.0000). The Johansen cointegration test confirms the presence of a long‑run equilibrium relationship among the variables. These findings underscore the vulnerability of household welfare to macroeconomic instability in Nigeria. They provide empirical support for coordinated policy interventions aimed at exchange rate stabilization, inflation control, and employment generation.

Keywords: Naira depreciation; household welfare; exchange rate; inflation; unemployment; consumption expenditure; Nigeria.