Although several theories of growth point towards a positive effect of human capital on growth, empirical evidence on this issue has been mixed. Using the Correlation and Regression analyses, this work examines empirically the role of human capital in Nigeria's economic development. Empirical results indicate that there is, indeed a long-run relationship among labour force, physical capital investment proxied by real gross domestic capital formation, human capital formation, proxied by enrollment in educational institutions and economic growth in Nigeria. Findings show that there is a feedback mechanism between human capital formation and economic growth in Nigeria, Thus, the policy implication of the findings is that government should place a high priority on human capital development. Efforts should be intensified to increase investment in human capital to achieve the growth which would engender economic development. Most importantly, education should be given prominence in Nigeria's developmental efforts. This would propel the economy to higher level of productivity.



1.1     Background to the study

1.2     Statement of the research problem

1.3     Objectives of the study

1.4     Statement of the research questions

1 .5    Statement of the research hypotheses

1.6     Sources of data and methodology

1.7     Scope of the study

1.8     Significance of the study

1.9     Plan of the study


2.1 Meaning of human capital development

2.2 Relationship between human capital development and economic growth     

2.3 Health and education as component of human capital

2.4 Human capital development: Investing in Health and education

2.5 Human capital development in Nigeria


3.1 The data set and sources

3.2 Restatement of the hypotheses

3.3 Model specification

3.4 Methodology and a priori expectations



4.1 Presentation of data

4.2 Analyses of data and interpretation of result

4.3 Statistical decision



5.1. Summary of findings

5.2 Policy recommendation

5.3 Conclusion






The role of human capital in economic growth cannot be overemphasized. The development of human capital has been recognized by economists to be a key prerequisite for a country's socio-economic and political transformation. Among the generally agreed causal factors responsible for the impressive performance of the economy of most of the developed and the newly industrializing countries is an impressive commitment to human capital formation.

(Adedeji and Bamidele, 2003; World Bank, 1995, Barro, 1991). This has been largely achieved through increased knowledge, skills and capabilities acquired through education and training by all the people of these countries.

It has been stressed that the differences in the level of socio-economic development across nations is attributed not so much to natural resources and endowments and the stock of physical capital but to the quality and quantity of human resources. According to Oladeji and Adebayo (1996) human resources are critical variables in the growth process and worthy of development. They are not only means but, more importantly, the ends that must be served to achieve economic progress. This is underscored by Harbinson (1973) who opined that "human resources constitute the ultimate basis for the wealth of nations. Capital and natural resources are passive factors of production: human beings are the active agents who accumulate capital, exploit natural resources, and build social, economic, and political organizations. And carry forward national development. Clearly a country which is unable to develop the skills and knowledge of its people and to utilize them effectively in the national economy will be unable to develop anything else".

Nigeria's most glaring objective since independence in 1960 has been to achieve stability, material prosperity, peace and social progress. However, this has been hampered as a result of internal problems. These include inadequate human development, primitive agricultural practices, weak infrastructure, and uninspiring growth of the manufacturing sector, a poor policy, inadequate regulatory environment and mis-management and misuse of resources (corruption). In order to ensure the economy delivers on its potentials, 'the country experimented with two development philosophies-a private sector-led growth in which the private sector served as the "engine house" of the economy and a public sector - driven growth in which the government assumed the "commanding heights" of the economy. The initial low level of private sector development, however, led to public sector dominance of the economy, encouraged by growth in the oil sector (UNDP, 2009).

It is noteworthy that since the advent of civilian rule in 1999, growth performance has improved significantly. The last seven years witnessed an average growth rate of about 6 percent (UNDP, 2009:5; CBN, 2008) However, economic growth has not resulted in appreciable decline in unemployment and poverty prevalence. Human development has remained unimpressive as shown by the indicators in Table 1.

Table 1: Nigeria's Human Development Summary Statistics by Zones, 2009























North Central






North West






North East






South West






South East






South South






Source:       UNDP (2010:5) Summary: Human Development Report Nigeria 2009-2010, UNDP, Abuja


Over the years, successive Nigerian governments recognized the importance of human capital formation in the development process and have embarked on various programmes and projects which led to the establishment of educational institutions and health Centre’s throughout the country. However, in the late 1970s and early 1980s, federal government spending grew substantially resulting in fiscal crisis, inflation, and heavy borrowings.

Subsequently, through the austerity measures adopted in 1982 and Structural Adjustment Programme (SAP) introduced in 1986, the country attempted to bring down fiscal deficits as part of its stabilization and adjustment programmes, often by reducing public spending on across-the board basis. These reductions resulted in unprecedented economic and social costs as human resources development was neglected with adverse long-term development consequences (Oyinlola and Adam, 20_03). Thus, the ultimate goal of economic development which underscored the need to improve the well-being of people was overlooked.

In more recent times, renewed attention was paid to the role of human capital formation in the country's development process and this has prompted the federal government to declare in its 1999-2003 economic policy programme that "the economy exists for and belongs to the people, and at all times the general well-being of all the people shall be the overriding objectives of the government and the proper measure of performance" (FGN, 1999). This .policy statement of the government is further reiterated in the National Economic Empowerment and Development Strategy (NEEDS). The provision of high-quality education and health care to all the country's citizens is considered a key element of public policy by all levels of government. Also, in the early part of this year, just before the general election, President Good luck Jonathan approved the establishment of new universities in order to enhance access to tertiary education and thus boost human capital development. Though, the wisdom behind the creation of new universities, to satisfy political needs, when the existing ones are grossly under-funded, is questionable.

Against this background, there is the need to examine if there truly exists a relationship between human capital development and economic development on the one hand, and also determine if investment in education and health care has really been boosting human capital development.


Following are the objectives for which this work is done.

  • To examine the impact of human capital formation on economic development in Nigeria between 1983 and 2010;
  • To determine if investment in education has been appropriately leading to economic development;
  • To establish if there exists a link between health care development and economic development;
  • And on the basis of the findings, recommend policies and measures for improving human capital formation in the country.


As a follow up to the preceding objectives, the following are the appropriate research questions.

  • Is there a significant relationship between human capital formation and economic development in Nigeria?
  • Is the relationship between investment in education and economic development significant?
  • Is there a significant relationship between health care development and economic development?


In order to be able to provide answers to the questions stated above, the following null and alternative hypotheses are tentatively stated.

Hypothesis I

H0: There is no significant relationship between human capital formation and economic development in Nigeria between 1983 and 2010.

HI: There is a significant relationship between human capital formation and economic development in Nigeria between 1983 and 2010.·

Hypothesis II

H0: The relationship between investment in education and economic development in Nigeria is not significant.

HI: The relationship between investment in education and economic development in Nigeria is significant.

Hypothesis III

H0: There is no significant relationship between health care development and economic development.

HI: There is a significant relationship between health care development and economic development.


The data for this study would be obtained mainly from secondary sources, particularly from Central Bank of Nigeria (CBN) publications and that of the Federal Office of Statistics and relevant journals, textbooks and financial newspapers. The data to be collected include: gross domestic product (which is used to denote economic development), enrolment in educational institution, which is used to denote human capital formation; and spending on education and health care development.

The research work will make use of the Statistical packages for Social Sciences (SPSS) in estimating the relationship between the variables as proposed by the respective hypothesis. The Ordinary Least Square (OLS) technique will be employed in obtaining the numerical estimates of the coefficients in the model to be formulated. The OLS method is chosen because it possesses some optimal properties; its computational procedure is fairly simple and it is also an essential component of most other estimation techniques. The estimation period will cover 1983 through 2010.


The economy is a large component with a lot of diverse and sometimes complex parts such that a lot of variables do interplay in order to initiate the development process. This work will however limit its searchlight on the contribution of human capital development/formation on economic development. Also, human capital formation is a variable that is largely dependent on a host of factors other than educational and health care development. Yet, these two are chosen because they are considered to be the most important determinant of human capital formation. Thus, the scope of this work is defined by the chosen variables.


The study will explore the impact or effectiveness of human capital formation on Nigerian economic development. At the successful completion of this work, it is expected that it will contribute to existing literature on the subject matter by investigating empirically the role, which human capital formation play on economic development of the country, and the contribution of education and health care delivery to human capital formation .. The-main importance of this study is that it will provide policy recommendations to policy-makers on ways to improve the relationship between human capital formation and economic development, and how investment in education and health care delivery will appropriately lead to the development of human resource.


Following this chapter, chapter two presents a review of relevant literature while chapter three outlines the analytical framework and the model. Chapter four presents and discusses the empirical data and results while chapter five concludes the work.



Click Here To Get The Complete Project »

How To Write Chapter Three Of Your Research Project (Research Methodology)

  • Methodology In Research Paper

    Chapter three of the research project or the research methodology is another significant part of the research project writing. In developing the chapter three of the research project, you state the purpose of research, research method you wish to adopt, the instruments to be used, where you will collect your data, types of data collection, and how you collected it.

    This chapter explains the different methods to be used in the research project. Here you mention the procedures and strategies you will employ in the study such as research design, study design in research, research area (area of the study), the population of the study, etc. You also tell the reader your research design methods, why you chose a particular method, method of analysis, how you planned to analyze your data.

    Your methodology should be written in a simple language such that other researchers can follow the method and arrive at the same conclusion or findings.

    You can choose a survey design when you want to survey a particular location or behavior by administering instruments such as structured questionnaires, interviews, or experimental; if you intend manipulating some variables.

    The purpose of chapter three (research methodology) is to give an experienced investigator enough information to replicate the study. Some supervisors do not understand this and require students to write what is in effect, a textbook.

    A research design is used to structure the research and to show how all of the major parts of the research project, including the sample, measures, and methods of assignment, work together to address the central research questions in the study. The chapter three should begin with a paragraph reiterating the purpose of research. It is very important that before choosing design methods try and ask yourself the following questions: Will I generate enough information that will help me to solve the research problem by adopting this method?

    Method vs Methodology

    I think the most appropriate in methods versus methodology is to think in terms of their inter-connectedness and relationship between both. You should not beging thinking so much about research methods without thinking of developing a research methodology.

    Metodologia or methodology is the consideration of your research objectives and the most effective method and approach to meet those objectives. That is to say that methodology in research paper is the first step in planning a research project work.

    Design Methodology: Methodological Approach

    Example of methodology in research paper, you are attempting to identify the influence of personality on a road accident, you may wish to look at different personality types, you may also look at accident records from the FRSC, you may also wish to look at the personality of drivers that are accident victims, once you adopt this method, you are already doing a survey, and that becomes your metodologia or methodology.

    Your methodology should aim to provide you with the information to allow you to come to some conclusions about the personalities that are susceptible to a road accident or those personality types that are likely to have a road accident.

    The following subjects may or may not be in the order required by a particular institution of higher education, but all of the subjects constitute a defensible in metodologia or methodology chapter.

    Click here to complete this article - How To Write Chapter Three Of Your Research Project (Research Methodology)


Please feel free to carefully review some written and captured responses from our satisfied clients.

  • "I love what you guys are doing, your material guided me well through my research. Thank you for helping me achieve academic success."

    Sampson, University of Nigeria, Nsukka.
  • " is God-sent! I got good grades in my seminar and project with the help of your service, thank you soooooo much."

    Cynthia, Akwa Ibom State University .
  • "Sorry, it was in my spam folder all along, I should have looked it up properly first. Please keep up the good work, your team is quite commited. Am grateful...I will certainly refer my friends too."

    Elizabeth, Obafemi Awolowo University
  • "Am happy the defense went well, thanks to your articles. I may not be able to express how grateful I am for all your assistance, but on my honour, I owe you guys a good number of referrals. Thank you once again."

    Ali Olanrewaju, Lagos State University.
  • "My Dear Researchwap, initially I never believed one can actually do honest business transactions with Nigerians online until i stumbled into your website. You have broken a new legacy of record as far as am concerned. Keep up the good work!"

    Willie Ekereobong, University of Port Harcourt.
  • "WOW, SO IT'S TRUE??!! I can't believe I got this quality work for just 3k...I thought it was scam ooo. I wouldn't mind if it goes for over 5k, its worth it. Thank you!"

    Theressa, Igbinedion University.
  • "I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much, infact, I owe my graduating well today to you guys...."

    Joseph, Abia state Polytechnic.
  • "My friend told me about ResearchWap website, I doubted her until I saw her receive her full project in less than 15 miniutes, I tried mine too and got it same, right now, am telling everyone in my school about, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work"

    Christiana, Landmark University .
  • "I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!."

    Musa, Federal University of Technology Minna
  • "I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!."

    Ali Obafemi, Ibrahim Badamasi Babangida University, Niger State.
  • To contribute to our success story, send us a feedback or please kindly call 2348037664978.
    Then your comment and contact will be published here also with your consent.

    Thank you for choosing