Human capital development and economic growth in Nigeria

Abstract

The importance of human capital development to the growth and development of economies cannot be over-emphasized. Human capital development is  the process of acquiring knowledge, skills and other experiences which are needed to produce economic values. The Sustainable Development Goals  (SDGs) launched few years ago among other things, seek to improve human capital as it includes quality education for all and improvement in health and  well being which are part of human capital development. This paper discusses the impact of Human capital development on the economy of Nigeria.  Evidence from extant literature revealed that human capital development has a positive and significant impact on Nigeria’s economy. In  addition, a long run co-integration exists between human capital development and economic growth. However, from World Bank’s report, Nigeria has a  low Human Capital Index (HCI) of 36% which is below 56% set standard. This calls for the improvement in human capital development in the country. This  paper concludes with suggestions that the government of Nigeria should continue to improve the quality of education and health care. Furthermore, the  government should encourage private sectors whose activities have aided human capital development in Nigeria.