Recent Issues on Human Capital Formation and Development of the Nigerian Economy

The role of human capital formation in economic growth and development has been highly underestimated in Nigeria. The study at this moment attempts to create an insight into the importance of human capital formation using real GDP per capita, government expenditure on health, government expenditure on education and primary school enrolment in the case of Nigeria. It used time series data from 1980 to 2017 and employed OLS regression technique, Johanssen cointegration and Granger causality test. The results from the various methods utilized affirmed the importance of human capital formation towards actualizing economic growth and development in Nigeria. The ordinary least square regression result showed a positive relationship between Government capital expenditure on health, Education and primary school enrolment. The Johanssen cointegration result showed cointegrating vectors in both the trace and maximum Eigenvalue test. The results from the Granger causality test indicated a bi-directional between primary school enrolment and Real GDP, a Uni-directional relationship between real GDP and government capital expenditure on health and education. The study strongly recommends a more budgetary capital allocation to health and education. The study went further to suggest strategies that would ensure the increase in primary school enrolment.