Human Capital Development and Nigeria’s Economic Growth (1980 - 2015)

ABSTRACT
This study examined the impact of human capital development on the Economic Growth of Nigeria for the period of 1980 – 2015. The study adopted time series econometrics analysis and descriptive statistics to determine the impact of human capital development on Nigeria’s economic growth as well as the long-run relationship between human capital development and economic growth in Nigeria. For purposes of clarity, models were specified as (RGDP) dependent variable, (HCD) and (GFCF) as independent variables. In order to achieve the objectives of the research work, diagnostic tests such as unit root, co-integration, Error Correction Model (ECM) and Ordinary Least Square (OLS) were carried out in which changes in RGDP was regressed on human capital development (HCD) and gross fixed capital formation (GFCF) using annual time series data from CBN statistical bulletin. The result of our analysis shows that human capital development significantly influences the rate of growth of the Nigerian economy. The study also found that long-run relationship exists between human capital development and economic growth in Nigeria. Based on the findings above, the study recommends that Government should channel funds to programmes that will encourage training of skills as this will help to improve human resources. The study also recommends that to increase physical capital formation in the education sector, Government should increase spending on social and economic infrastructure so as to enhance the efficiency of the labour force and enhance productivity which is economic growth