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Human Resources Development And Economic Growth In Nigeria (1990-2016)




The role of human resource development has been become a central policy issue in most developing countries as a viable means of enhancing rapid national development in Nigeria. To achieve any growth in any country, human resources development determines the extent of such growth. This study examines the role of human resources development and economic growth in Nigeria. To achieve this objective, ordinary least square method of analysis (OLS) was adopted using data from 1990-2016. The result indicated that significant positive relationship exists between human resources and economic growth. Data collected were on GDP, education expenditure and expenditure on health, the data used were culled form a secondary source CBN statistical bulletin., journals as well as internet materials. Form the econometric analysis; it was found that human resource development has a significant impact on Nigeria economy. It is recommended that notwithstanding the positive and significant impact of human resource development, that there is also need to improve on the pay package of health workers and teachers at all levels of education especially at primary, secondary and higher levels. This will reduce incessant strike in public sectors.



1.1     Background of the Study

The single most important objective of economic growth and development is simply, the enhancement of the capacity of the human person-human resource development. Human resource has been recognized globally as one major factor that is responsible for the wealth of nations. Traditional economic theories emphasized on sustained increase in Gross Domestic Product, as a major indication of development. But what is growth if it does not lead to the unlocking and utilization of human capabilities.

One major challenge facing the global community is how to achieve sustainable development. According to the IMF (2002), sustainable development is made up of three pillars. They are economic development, social development and environmental protection. The essence of these pillars are to maintain and enhance the capacity and capability of future generation while meeting the needs of the present generation. To accomplish these multi-tasks, human resource development should be strategically cultivated and positioned for the preservation of both the present and the future economic growth and development.

Investment in human development plays an important role in increasing competitiveness, improving quality in life of the population and in generating economic growth of a country currently, Nigeria wishes to be among twenty most developed countries in the world by year 2020. To give effect to this, one of the pre-requisites is to ensure that capable manpower is available in various areas of social, political, institutional, technological and economic endeavors which drive the process of growth industrialization.

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Consistent with the NEEDS programme of 2004, and the current vision 2020 development programme agenda, the country’s human resource development needs to be strengthened and stabilized in order to accelerate economic activities and trigger off higher productivity, income and economic growth. The nations aspiration to be in the league of 20 leading economies in the world by 2020 emerged in the realization that endowment of Nigeria in material and human resources places her in good position to achieve this greatness. But the human development reports of UNDP shows that Nigeria is still at low level of human resource development compared to countries in emerging economies. To many, people, capital is in the form of bank accounts, financial and other income physical assets. Jhingan (2005) points out that in the process of economic growth, it is customary to attach more importance to the accumulation of physical resource or capital resources are human capital. But aside these tangible  capital resources are human capital resources as an aggregate of education or schooling, training and health care delivery. These aggregation of human resource development can further increase productivity, income, improve health and fitness, good habits in individuals such as being trustworthy and responsible. Therefore, education and training are the most important factors in human resource development. Economists often use the term human capital for education, health and other human capabilities that can enhance productivity when increased. Studies in several other countries with different cultural and economic systems (ownership of means of production that is capitalism, socialism and mixed economy) also showed the same outcome that income obtained by educated people will always be above the average income level.

Furthermore, growth continuum per capita income of a country is partly dependent in scientific  and technical knowledge development which further improves productivity of labour and other inputs in production. Lawanson (2009) points out that health and education are two closely related human resource components that work together to make the individual more productive. As noted by Todaro and Smith (2006), health is central  to well-being and education is essential for satisfying and rewarding life; both are fundamental to the broader nation of expanded human capabilities.

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1.2 Statement of the Problem

The main rationale behind government involvement in macroeconomic activities is to eliminate market imperfections in resource allocations. The alternative way to ensuring that human resource development contributes on economic growth in Nigeria is by government spending in education and health sectors.

Relying on the modern human capital theories which establishes a string positive link between human resource development success of industrialized nations such as China, policy makers all over the country Nigeria, including the international agencies  namely, World Health Organization (WHO); United Nations Education Scientific Organization (UNESCO), World Bank and International Monetary Fund (IMF), have advocated for increased budgetary allocation to the health and education sectors.

In recent time, the unattractive level of literacy rate and life expecting (less than l48 years) and the world rank of Nigeria’s human development as 152th out of 187 countries in the world, in the face of ever expanding public expenditures in education and health respectively in Nigeria have been a serious source of concern to researchers, policy makers and the general public. For example, the UN human development report (2010) reveals that while health and education spending as percentage of total government expenditure averages 12.4% and 16.2% respectively in Nigeria has remained 0.46. this is in sharp contrast with developed countries that spend slightly the same percentage on health and education and records Human Development Index (HD1) of well over 0.9. this also goes to suggest that it is not just about expenditure in these public sectors but going to ensure prudent implementation of the proposed programmes and projects that will enhance human resource development which contributes in economic growth.

1.3     Objectives of the Study

  1. To analyze the role of human resource development through education an economic growth of Nigeria.
  2. To examine the role of human resource development through health on the economic growth of Nigeria.

1.4     Research Questions

  1. To what extent has human resource development through education contributed to economic growth in Nigeria?
  2. Does human resource development through contribute to economic growth of Nigeria.

1.5     Statement of Hypothesis

In carrying out this investigation on the human resource development and Economic growth in Nigeria, the researcher will test the null hypothesis and its alternative are stated as follows:

  1. Ho: Human resource development through education has no significant effect on the economic growth of Nigeria.

H1: Human resource development through education has significant effect on the economic growth of Nigeria.

  1. Ho: Human resource development through health has no significant effect on the economic growth of Nigeria.
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H1: Human resource development through health has significant effect on the economic growth of Nigeria.

1.6     Significance of the Study

This investigation is done out of the need to develop and strengthen  the resource which is the capacity of the people in Nigeria. An average Nigerian finds it difficult to access educational and health services due to high cost of the services and other challenges facing the sectors. This accounts for high population of our youths going into trade after their primary or secondary education. Our health  facilities and personnel are sub-standard and cannot perform efficiently and effectively and this accounts for most people leaving the country in search of better medical services abroad. This work therefore will be beneficial to the poor class as it tends to proffer recommendations that will reduce the high level of inequality in Nigeria. This is so as considerable attention has been paid on how much health and education services have been targeted to the poor in this research study.

In particular, this work will be beneficial to the government sector of the country. The government will definitely find this work useful as it tends to proffer solutions that is capable of helping the government to achieve her vision 2020 when Nigeria is expected to be in the league of 20 top leading economies in the world.

1.7     Scope of the Study

This study will cover the period of 1991-2016, a period of twenty five years. The period is particularly important for the study and the nation’s military rule and civilian rule.

The researcher was of the opinion that although, there was an increase in government sectoral allocation to public sectors, it is still not sufficient enough and as such, much improvement in human capacity is yet to be felt. The researcher also argues that it is not just about expenditures but prudent management to ensure implementation of the proposed projects.

The researcher will uncover the challenges faced by the public sector and this proffer recommendations to make Nigeria achieve her vision2020 agenda and the Millennium Development Goals (MDGs), number one to six which dwells on education and health and eradication of poverty among Nigerians.

Pages:  71

Category: Project

Format:  Word & PDF         

Chapters: 1-5                                 

Material contains Table of Content, Abstract and References.


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