ANALYSIS HUMAN CAPITAL INVESTMENTS AND ECONOMIC PERFORMANCE IN NIGERIA

Abstract

The study looks into the relationship between human capital investments and Nigeria's economic growth from 1993 and 2023. It makes use of secondary data from the Statistical Bulletin published by the Central Bank of Nigeria. The purpose of the study is to evaluate the effect of investments in human capital on economic growth using GDP as the dependent variable. The government's expenditures on education and health care are examples of independent variables that are used to quantify these investments. Using Ordinary Least Squares (OLS) econometric methods, hypotheses were tested. The results show that government investment on health and education has a major impact on Nigeria's GDP. According to the coefficient of determination, variations in government capital spending are responsible for roughly 69% of GDP variations. The study comes to the conclusion that investments in human capital have a significant impact on economic growth and suggests that in order to promote economic development, the government should effectively manage its expenditure of human capital. In order to improve development and living standards, it suggests raising spending in health and education and stresses the significance of careful management and assessment of financing for these sectors.