Human Capital Investment and Economic Growth in Nigeria: 1989-2019

Abstract

Human capital investment has been identified as the increase in the potential of an individual through education,
knowledge, skills and health acquired overtime which enhances his ability to be more productive in the society. It is believed that
the more productive a people are, the more developed the economy, having been impacted by the increased productivity of the
workforce. As its main objective, this paper examined the relationship between human capital investment and economic growth
with Nigeria in focus and between the period 1989 – 2019. The paper used secondary sources of information for the study. Data
obtained within the scope of the study and the variables were within the period of investigation. It adopted the unit root, the dynamic
ordinary least squares, as well as the Error Correction Model (ECM) to test the short and long run relationship of the variables
selected for the study. Between human capital investment and economic growth in Nigeria, the results showed a strong relationship.
Based on the result, the study recommended that government prioritize education and health to assure the socio-economic well being
of the people. As a corollary to the above, government at all tiers should increase annual budgetary allocation to these sectors.
Government should also intensify efforts in economic and social orientation to mobilize and inculcate sanitary and health culture in
the people.