Human Capital Investment and Human Development Index in Nigeria

This study examined Human Capital Investment and Human Development Index in Nigeria. Human Capital Investment was proxied by capital expenditure on education, recurrent expenditure on education, capital expenditure on health, recurrent expenditure on health and tertiary enrolment, which was regressed against HDI. Hypotheses that guided the study were formulated in line with the study objectives and relevant literature were reviewed and evaluated. Relevant data were extracted from the annual Statistical Bulletin of the Central Bank of Nigeria and the National Bureau of Statistics. Unit root test was conducted using Augmented Dickey Fuller method which revealed that the variables were integrated at level and first difference necessitating the use of autoregressive distributive lag/bond test to explore the long run relationship existing among the variables in the model and the result showed that the variables in the model were cointegrated thus the researchers proceeded in evaluating the long run relationship as well as the co-integrating form in the model. From the result of the various tests, it was revealed that while some of the outcomes conformed to apriori expectations, others did not conform to apriori expectations. Based on the findings from the analysis, the study recommended amongst others, that; Capital expenditures on health and education must be sustained and increased. The result shows a positive relationship and this will end up improving on the human development index of Nigeria in the long run; Recurrent expenditures on health and education must be studied as well so as to cut down on wasteful spending as they also impact on the human development capacity of the country and the economy significantly. Proper accounting and blocking of leakages will go a long way in improving the Nigerian economy.