ABSTRACT

This research work tries to investigate the analysis of human capital formation and economic development in Nigeria between 1981 to 2015. Major issues such as human capital formation and economic development, human capital formulated efforts in Nigeria, strategies for human capital development; problems of human capital formation in Nigeria as well as theoretical framework were ascertained. The neo-classical mode and multiple regression using ordinary least square (OLS) to analyze the relationship between the dependent and independent variables using GDPPC (gross domestic product per capital) as a proxy for economic growth and development was conducted. The result shows that there is positive relationship between government expenditure on education and health while that of government expenditure on economic and social services is estimated to have a negative relationship. Finally, the policy recommendation arising from the study shows if government wants to increase the level of economic growth in Nigeria, then it should invest more on human capital and also roll out programmes that will encourage human capital development. One way this can be done is to increase the funding of the education sector in Nigeria as empirical findings from our study provided evidence that it has a positive significant relationship with economic growth in Nigeria.