EKSU Journal of the Management Scientists

Human Capital Development and Economic Growth in Nigeria

Abstract

This study examined the effects of human capital development on economic growth in Nigeria from 1981 to 2021. The goals are to define the patterns in human capital development and economic advancement, assess the impact of these trends, and establish a causal link between these trends and economic growth. The Central Bank of Nigeria (CBN) collected further information on administrative expenditure on education, government expenditure on health, and real gross domestic product from the Statistical Bulletin (a number of publications). The data set's stationarity was evaluated using the unit root test (Augmented Dickey-Fuller) unit root test. The Granger pairwise causality evaluation was used to evaluate the directions of loss among the variables, while the Engle-Granger single equation Cointegration assessment was utilized to determine the long-term correlation between the variables. The Cointegration test's outcome showed that the qualities' cointegrating correlation was nonexistent. Additionally, the results of the Ordinary Least Squares (OLS) regression estimate showed that the growth of the economy in Nigeria is relevantly influenced by administrative expenditures on health as opposed to education. The results of the causation test also showed that the expansion of the Nigerian economy was caused by administrative costs for health and education. The study came to the conclusion that administrative spending on health and education had a positive and significant impact on economic growth in Nigeria. Therefore, it was suggested that the government should cautiously implement policies to promote human capital development in order to spur economic growth, invest in education because it is an engine for economic growth, support the health sector by supplying all hospitals with cutting-edge technology that can keep up with that used in advanced nations.