Human Capital Investment and Economic Development in Nigeria

The study investigated the impact of human capital investment on economic development in Nigeria from 1990 to 2022. To do this, the study used the ex post facto research design and obtained secondary data from the Central Bank of Nigeria Statistical Bulletin and the World Development Indicators (World Bank, 2023). The study specified the functional relationship between the dependent variable (economic development) and the independent variables (government expenditure on health, government expenditure on education, and out-of-pocket expenditure). Economic development was measured using the human development index (HDI). The descriptive statistics and trend analysis were used to analyze the data for the variables in the study. The Ordinary Least Squares (OLS) multiple regression analysis was then used to estimate the relationship between the variables in the study. The result revealed that: Government expenditure on health has a positive and significant impact on economic development in Nigeria; there is a significant but negative impact of Government expenditure on education on economic development in Nigeria; and out-of-pocket expenditure has a positive but not significantly impacted on economic development in Nigeria. Based on the results of the study, it was recommended that the government should prioritize health expenditure as a key component of its investment spending due to its significant and positive contribution to human development index.