Abstract:
Most theoretical studies like the endogenous growth theory have shown that countries and
regions which invest heavily on human capital development should expect higher growth rates
than areas with inferior levels. Understanding and addressing challenges related to human
capital is thus fundamental to short term stability as well as the long term growth, prosperity and
competitiveness of nations. Motivated by this understanding, the study explored simultaneously,
several structural and institutional factors that may influence human capital development and its
policy implication for economic growth in Nigeria. The Dynamic Ordinary Least Squares
(DOLS) was adopted as analytical technique. The estimated DOLS results showed that the
significant determinants of economic growth are largely from human capital development, public
expenditure on health, infrastructures and democratic governance. The research therefore,
suggested provision of sectoral policies, especially educational and health policies that are not
only pro-people development, but create the income and welfare enhancing opportunities needed
to boost human development. There is need for government to look for other stable sources of
financing infrastructures in Nigeria because the reliance on crude oil revenue has brought about
fluctuation in infrastructural development which has negative effect on economic growth. Good
example of other sources of financing infrastructures is the recent sovereign Sukuk bond by the
Federal government to raise funds through the non interest capital market. The Sukuk issue is
targeted at infrastructure development and financial inclusion.
