Manpower Development and Economic Growth in Nigeria

Abstract

Manpower/ Human capital development involves investment in education, training, health and other social services that will boost the capacity of labour. This study is an attempt to provide empirical evidence of the impact of human capital development proxied by enrolment in educational institutions on economic growth in Nigeria from 1970-2010. With the use of the augmented Solow model, this study made use of the Ordinary Least Square (OLS) and Cochrane-Orcutt techniques to determine the relationship between human capital development and economic growth. It was found that expenditure on education in addition to enrolment in educational institutions, particularly, primary and tertiary institutions have impact on economic growth.It can be said that the rate of human capital development in Nigeria is quite low. Similarly, there is a decline in the quality of education at all levels since the 1980s.  Therefore, for Nigeria to experience rapid economic growth soonest and in many more years to come, an attempt should be made to restructure the educational system to meet the challenges being faced by the society, thereby improving the quality, the government should increase its expenditure on education, more job opportunities should be provided to serve as incentives, the wage structure should be enhanced and a conducive working environment provided to encourage the teachers, thus boosting their morale. Moreover, the government should ensure a stable macroeconomic environment, which will encourage increased investment in education and other social services provided by organized private sector, religious bodies and individuals.

Keyword: Manpower, Development, Economic Growth, Private Sector and Macroeconomic