IMPACT OF HUMAN CAPITAL DEVELOPMENT ON ECONOMIC GROWTH IN NIGERIA

Abstract

Nigeria's human capital development has been a goal rather than a reality, despite abundant resources. The country's development challenges are likely to persist, and the impact of human capital on economic growth is underexplored. The study was an attempt to empirically examine the impact of human capital development on Economic growth in Nigeria. The study made use of secondary data which spanned from 1990 to 2022. The ex-post facto research design was adopted while the Fully modified ordinary least square (FMOLS) approach and the bound test were used for the estimation of the long and short run impact of human capital development on economic growth in Nigeria. Based on the coefficient and probability values the results revealed that government spending on education sector in Nigeria has an inverse and significant impact on economic growth in Nigeria, the government spending on the health sector in Nigeria has a positive and significant impact on economic growth in Nigeria, the per capital income has a positive and significant impact on economic growth in Nigeria,. Therefore, the study recommended that Government spending on education and health significantly impacts real domestic product, requiring increased investments and efficient utilization. Addressing corruption and inadequate infrastructure is crucial. Health policies should improve healthcare infrastructure and reduce disease burdens for a healthier population and robust economy. Labor and employment ministries should focus on increasing per capita income, stimulating job creation, skill development, and entrepreneurship.