Author: Onum Friday Okoh

Doi: 10.26480/mjhrm.02.2025.92.97

This is an open access article distributed under the Creative Commons Attribution License CC BY 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Despite Nigeria’s abundant resources, human capital development has remained more of a goal than a reality. The nation’s developmental challenges are likely to persist, and the role of human capital in driving economic growth has not been thoroughly examined. This study aimed to empirically investigate the impact of human capital development on economic growth in Nigeria. Secondary data from 1990 to 2022 were utilized, and an ex-post facto research design was employed. The Fully Modified Ordinary Least Squares (FMOLS) approach and the bound test were applied to assess both the long- and short-term effects of human capital development on economic growth. The results indicated that government spending on education had a positive impact on economic growth, while spending on the health sector also had a positive and significant effect. Additionally, per capita income was found to have a positive and significant impact on economic growth. Based on these findings, the study recommends that government spending on education and health be enhanced and used efficiently to boost real GDP. Addressing corruption and infrastructure gaps is vital, as is improving healthcare infrastructure to reduce disease burdens. Furthermore, the Labor and Employment ministries should focus on increasing per capita income, creating jobs, and fostering skill development and entrepreneurship.