Human Capital and Economic performance in Nigeria

International Journal of Research and Innovation in Social Science (IJRISS) | Volume V, Issue I, January 2021 | ISSN 2454–6186

Human Capital and Economic performance in Nigeria 

  Faizah Adhama Mukhtar¹ Kabiru Sufi Sa’id² and Hadiza Nasir Iro^3
1Federal University Dutse, Jigawa State, Nigeria
^2,3Kano State College of Education and Preliminary studies, Nigeria

Abstract
The study analyses the influence of human capital progress on economic performance in Nigeria using Endogenous Growth model and ARDL approach from 1981 to 2019. Data was obtained from central bank of Nigeria statistical bulletin and world development indicator. Long run estimate illustrates that capital expenditure on education accelerates economic progress, recurrent expenditure on education does not explain economic growth and population shrinks economic performance. Short run result also shows that capital expenditure on education is positive and significant in determining economic growth. On the contrary, recurrent expenditure on education do not impact significantly on economic growth. Therefore, based on the findings, the study recommends that in order to boost human capital and attain sustainable economic progress, budget allocation on capital expenditure on education should be increased and policy makers should design policies that will curb population growth such as limiting the number of child birth per couple and provision of free family planning tools.

Keywords: Human capital, trade, GDP, ARDL, Nigeria

1. Introduction
In order to achieve economic, social and political growth, there is the need for aqualitative human capital. The economies that grows fastsuch as China, Japan, India, Korea, and the likes, even though their level of natural endowments is low, obtained economic growth because of their investment in human capital development(Taiwo, Oluwatobi & Olurinola , 2016).Nigeria as a country is blessed with human resource. Oluwaseyi (2012) stated that in 2010, 53.8% of the country’s populace set up the economic active group, this is an indication that the country has the ability to build an affluent economy, decrease poverty, provide health facilities, education and infrastructural facilities that her populace. All the same, poverty is increasing, infrastructural facilities are poor (particularly roads and power supply) which pave way to the breakdown of many industries, and has bring about high level of unemployment. In addition, macroeconomic indicators such as balance of payments, exchange rate, inflation rate, import obligations, and national savings make known that the country has not progressed well in the last couple of years (Ohwofasa, Obeh & Atumah, 2012).

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