ABSTRACT

This work discusses the effect of human capital on labour productivity of manufacturing sector in Nigeria. The study applied the ordinary least squares regression analysis in the estimation. The evaluation result shows that human capital has a positive effect on the sectoral labour productivity level of the manufacturing firms. The study found that government expenditure on education maintained a positive relationship with the dependent variable, government expenditure on health has a positive relationship with the dependent variable but statistical insignificant while manufacturing capacity index has a negative relationship with labour productivity . Consequently, it was recommended among others that more stock of physical capital needed to be acquired, to facilitate more investment in human capital and thereby enhance productivity capacity in Nigeria