INVESTMENT ON HUMAN CAPITAL AND ITS IMPACT ON NIGERIAN ECONOMIC GROWTH
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INVESTMENT ON HUMAN CAPITAL AND ITS IMPACT ON NIGERIAN ECONOMIC GROWTH
Chapter One: Introduction
1.1 Background of the Study
Investment in human capital can be viewed as a growth goal. It is a method of realising people’s potential by expanding their capacities, which entails empowering people and allowing them to actively engage in the development process.
Schultz (1961) defined human capital as the resources that are inherent in every human being and can be traded between users and owners to improve their individual living conditions. He defined the intrinsic resources in humans as knowledge, skills, and attitude.
Human capital growth is also a method of improving people’s abilities, knowledge, productivity, and inventiveness through the human capital formation process.
According to Todaro and Smith (2003), human capital as an economic phrase refers to health, education, and other human capacities that might increase production.
According to Jhingan (2005), it is common to prioritise human capital formation during the economic growth process. No country has achieved sustained economic growth without making significant investments in human capital.
In awareness of this, Aigbokhan (2007) defined education as a fundamental and obvious process by which skills, knowledge, and attitudes are gained in order to perform socioeconomic duties, integrate into society, improve personal competence, and seek better possibilities.
All countries have long recognised the need for significant investment in human capital to stimulate the material productivity of its citizens and the development of worthy resourceful personnel to propel the growth process.
Harbison (1964) noted that capital and natural resources are passive factors of production, whereas human resources are active factors of production.
Human capital is a country’s most precious resource; without it, physical capital (tools, machinery, and equipment) will not work well, impeding economic growth.
Igun (2006) defines human capital as the complete store of knowledge, skills, and competences, as well as the population’s innovative talents. Given the economic relevance of knowledge, human capital has piqued the curiosity of both academics and the general public.
According to Meier (1964), economic development is the upward movement of the entire social system or modernization, such as an increase in productivity; social and economic equality, modern knowledge, improved institutions and attitudes
and a rationally coordinated system; and policy measures that can remove the majority of undesirable conditions in the social system that have perpetuated a state of underdevelopment.
According to Tadaro and Michael (1985), economic progress included fundamental changes in institutional, social, and administrative structures, as well as public attitudes, practices, and beliefs.
The purpose of this research is to investigate the effects of investment on human capital and its effect on Nigerian economic growth.
1.2 Statement of the Problem
Human capital development has been a driver of economic growth and development in all economies, including Nigeria. In Nigeria, the government implemented a number of policy steps to attain this goal.
Among these policies are universal primary education (UPE) in 1976, which was not sustained due to the country’s socioeconomic and political conditions, the universal basic education (UBE) scheme, the structural adjustment programme (SAP), the National Primary Education Commission (NPEC), and the National Economic Empowerment and Development Strategy (NEEDS).
According to studies, these strategies have failed to achieve the anticipated results. They failed because to inadequate planning and policy implementation, among other factors. All of these studies, however, were conducted with the goal of supporting economic development through educational means.
More importantly, why has the economy remained underdeveloped despite multiple policies and enormous resources in this country?
Does this imply that these resources are not being used efficiently, or that there are barriers stopping those commissions from using these resources, opportunities, and resources?
Is Nigeria’s economic development affected by successive governments? All of these and many other concerns highlight the importance of conducting research on this critical economic issue.
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