The Effects of Government Expenditure on Human Capital Development and Economic Growth in Nigeria

Abstract

This study is an evaluation of the effects of government expenditure on human capital development and economic growth in Nigeria. Human capital development is the engine of economic growth not only in developed nations but also in developing countries. No matter the investment a country makes on other areas of development, unless its human capital is developed it cannot experience rapid and sustainable technological and industrial growth. Human capital development entails the acquisition of knowledge and applicable skills by a nation’s work force with a view to increasing and maximizing the country’s productive and inventive capacity. A skilful and well-equipped human resource is what creates economic growth in any country. This paper appraises the result and impact of government expenditure on the development of human capital in Nigeria and how this enhances or drives economic growth in the country. The paper specifically examines government’s recurrent and capital spending on education, health, and on research and development over a given period (1989-2018). The study adopted the ex-post facto research design method because secondary source of data was employed for the study. The paper relied on historical time series secondary data that were collected from the Central Bank of Nigeria’s annual statistical bulletin from 1989-2018. The study shows that there is need not only to inject more funds for human capital development through budgetary allocations, but also to efficiently use government expenditure for human capital development in Nigeria.