PUBLIC EXPENDITURE AND HUMAN CAPITAL DEVELOPMENT IN NIGERIA

Dalis T. Dabwor, Likita J. Ogba, Abekya J. Jatau

Abstract


Human capital is very important to the growth and development of every nation. Although availability of natural resources is necessary for an economy to develop, but it is not a sufficient condition. The quality of human capital is very essential; this explains why the developing countries in spite of their abundant natural resource endowments, are, rather, stagnating. On the other hand, a country like Singapore that has no feasible natural resources is more developed than countries like Nigeria and Angola. The difference lies in the fact that while the former is a knowledge driven economy, the later put the faith of their economies on revenue from natural resources. The main objective of this paper is to examine the impact of public expenditure on human capital development in Nigeria for the period 1995-2015. The study adopted quantitative method of analysis and the techniques employed for the analysis where the unit root, Johansen co-integration and Error Correction Model (ECM) were used. The result showed that both capital expenditure on education with coefficient value of 11.75 and recurrent expenditure on education with coefficient value of 0.57 have positive impact on tertiary enrolment in Nigeria. However, the impact of recurrent expenditure on education is statistically insignificant. This is attributed to poor implementation of the national budget, corruption, mismanagement and diversion of public
funds by government officials or political appointees. Therefore, the study recommended that there should be an increase in budgetary allocation to the education sector, especially in the aspect of recurrent expenditure; accountability in education administration amongst government officials must be checked; establishment of an education agency; and partnership with donor agencies to specifically Nigeria's human capital.

Keywords


Public expenditure, Human Capital, Development

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International Journal of Management Science Research ISSN ISSN 2536 – 605X(Print)

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