Human Capital Education and Sustainable Economic Growth in Nigeria

Abstract

The focus of the study is to assess the extent at which investment in human capital education can affect economic performance in Nigeria with particular emphasis on sustainable level of economic growth and development over the last  few decades. It has been argued in the extant literature that the nature of education provided in Nigeria is so poor  that the prospect of sustainable economic development is not likely to come by. The design of the study is basically  anchored on secondary data and econometric analysis, whilst all variables related to the human capital development  constitutes the population of the study. Accordingly, the sample is made up of one dependent variable and four  explanatory variables covering the period from 1986-2021. They include gross domestic product used as a function of  secondary school enrolment, primary school enrolment, adult literacy rate as well as public spending on education. The  data were obtained from various sources include the Central Bank of Nigeria’s various issues of Annual Reports and  Statement of Account and Statistical Bulletin as well as World Bank data bases. The data were analyzed using the  Johansen co-integration technique and the parsimonious error correction model, in order to ascertain the long and  short runs impact of the variables on economic growth in Nigeria. Accordingly, it was evidenced in the study that  equilibrium long run relationship exists between economic growth and the selected indicators of human capital  development. Specifically, it was observed in the study that enrolments into primary schools, secondary schools and  adult literacy rate had positive and significant effect on economic growth in Nigeria. However, the study found that the  level of government spending on education had negative but insignificant influence on human capital development in  Nigeria. Among other things, the study recommended for the need to increase budgeting allocation for the educational  sector that will enable the provision of adequate facilities and good learning environment.