Effect of Human Capital Investment on Economic Growth: Nigeria Perspective

Abstract

The study was conceptualised to ascertain the effect of human capital investment on economic growth in Nigeria. The ex-post facto research design was adopted because data relating both explained and predictor variables already exist in literature. The data for the study were extracted from CBN statistical bulletin and analysed using and descriptive statistic and Ordinary Least Square (OLS) as well as cointegration regression analysis. The result revealed that only capital expenditure on education has a positive and significant association with RGDP. Capital expenditure on health and universal education has a positive but insignificant association with RGDP, recurrent expenditure on education and health have a negative and insignificant association with RGDP. We concluded that human capital investment on economic growth in Nigeria is not significant. The study recommended that Government and policymakers should show concerted and sincere effort in building and developing human capacity through adequate educational funding across all levels.