The Effect of Human Capital Development on Economic Growth in Nigeria (An Empirical Analysis during 1970 – 2011)

Abstract

Nigeria’s overreaching objective since independence in 1960 has been to achieve stability, material prosperity, peace and social progress; however, this has been hampered due to inadequate human capital development.  This study was therefore carried out with the view to testing the effect of human capital development on economic growth in Nigeria.  In order to achieve this, data were sourced from the CBN Statistical Bulletin and Federal Ministry of Education publication during 1970 – 2011.  The Ordinary Least Square (OLS) statistical technique was employed in analysing the data. The study revealed a significant relationship between human capital and economic growth.  Based on the findings, it was recommended amongst others that in order to achieve the overreaching objectives of the country, there should be enlightenment campaign on the need to allocate more funds during budgetary allocations toward developing human capital; improved infrastructure and expansion of institutional capacity to produce quality human capital at all levels.

Keywords: Primary Enrolment, Secondary Enrolment and Tertiary Enrolment; VIF; TOL;