ABSTRACT
This project was a review of the role of human capital in Nigerians economic development. The Statement of Problem identified was as fiscal crisis, inflation, heavy borrowings, and unprecedented economic and social costs. To meet the general objective, the study was focused on the following specific objectives: to determine the relationship between economic growth and human capital development, identify possible ways of achieving stability, material prosperity, peace and social progress and examine the impact of human capital formation on economic growth in Nigeria. The descriptive survey method was used and the research tool was questionnaire. 200 respondents answered the questionnaire. Data analysis using Chi-square formula and presentation was done by the use of tables. The findings from the study showed mainly that there is a relationship between economic growth and human capital development. Finally, solutions and recommendations were proffered on the impact of investment in education and training on national economic growth is positive and significant. The write up is duly summarized.
TABLE OF CONTENTS
Tite Page i
Certification Page ii
Dedication iii
Acknowledgement iv
Abstract v
CHAPTER ONE: INTRODUCTION
1.1: Background of the Study 1
1.2: Statement of the Problem 2
1.3: Objective of the Study 3
- Research Questions 3
1.5: Research Hypotheses 4
1.6: Significance of Study 4
1.7: Scope of the Study 5
1.8: Limitations of the Study 5
1.9: Definition of Term 6
Reference 7
CHAPTER TWO: LITERATURE REVIEW
2.1 Meaning of Human Capital 8
2.2 Strategy of Human Capital Management 25
2.3 Human Capital Theory 27
2.4 concept of Human capital development 30
2.5 Processes for Developing Human Capital 33
2.6 An Overview of the Nigerian Economic Growth and Development 34
2.7 Human Capital and the Nigerian Content Development Act 2010 41
CHAPTER THREE: RESEARCH METHOD
3.0: Research Design 57
3.1: Area of the Study 57
3.2 Population of the Study 57
3.3: Procedure for Data Collection 58
3.4: Sample and Sampling Technique 59
3.5: Data Collection Instrument 60
3.6: Validation of Instrument 62
3.7: Method of Data 64
CHAPTER FOUR: PRESENTATION AND ANALYSES OF DATA
4.1: Presentation of Data 66
4.2: Analyses of Data 67
CHAPTER FIVE: SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSION
5.1: Summary of Findings 78
5.2: Recommandations 80
5.3: Conclusion 81
REFERENCE 83
APPENDIX 1
APPENDIX 2
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
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 and growth 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 Adabayo (1996), human resources are critical variable 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 opines 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, build social, economic, and political organizations and carry forward national development and growth. Clearly a country which is unable to develop the skills and knowledge of it’s people and to utilize them effectively in the national economy will be unable to develop anything else”.
In order to ensure the economy delivers on it’s 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 not worthy that since the advent of civilian role 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.
1.2 STATEMENT OF PROBLEM
Over the years, successive Nigerian governments recognized the importance of human capital formation in the development process and have embraced on various programmes and projects which led to the establishment of educational institutions and health centres 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 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 resource development was neglected with adverse long – term development consequences (Oyinlola and Adum, 2003). Thus, the ultimate goal of economic growth which underscored the need to improve the well – being of people was overlooked.
1.3 OBJECTIVES OF THE STUDY
This study was embarked upon to achieve the following objectives.
