1.1 CONTEXT OF THE STUDY
Numerous experts have, over time, confirmed the impact of human capital investment on economic growth. Human capital is regarded as the most precious resource and must be mobilized (Awopegba, 2003). Human capital covers health, education, and other human capabilities that can increase productivity (Todaro and Smith, 2003). Capital and natural resources are passive production variables, whereas human resources are active production elements. Human capital is a nation’s most precious resource; in its absence, physical capital (tools, machinery, and equipment) would fail to operate, which will limit economic growth.
Politically speaking, investing in human capital prepares individuals for engagement in political processes, particularly as democratic citizens. Socially, economically, and culturally, human capital investment contributes to fuller, more prosperous lives that are less limited by tradition. It is a means of empowering individuals, which will enable them to contribute significantly to the economic growth process. Human capital investment is essential to the economic expansion of Nigeria. Vision 20:2020 aims to enhance the educational system in terms of accessibility, equity, infrastructure, teacher quality, cumulative relevance, funding, and planning. The Millennium Development Goals (MDGs), which are scheduled to be attained in full by 2015, focus considerable emphasis on human capital. As a result, this research will investigate the role of health and education to Nigeria’s growth process in depth. Human capital’s primary issue is a deficiency in finance. This has caused a lack of skilled labor, unemployment, and most importantly, poverty. No nation can achieve considerable growth without adequate investments in human capital. The Asian tigers (Taiwan and Singapore), whose economies benefited from considerable investments in human capital, serve as a prime example.
In addition to education’s contribution to national economic growth, it also plays a significant role in reducing income inequality, according to research by Phillipe, Peter, and Fabrice (2011) and Kakar, Khilji, and Khan (2011). They determined that educational achievement and human capital development would positively reduce income inequality. In general, scholars agree that education influences economic growth by reducing the frequency of poverty, social imbalances, and income inequality. In addition, it has a good impact on the lives of the poor and needy. Due to the exponential growth of information and the rising complexity of its assimilation into industrial processes, the ability to acquire, accept, and adapt new knowledge will be a crucial factor of economic progress. This likely increased the need to explore the relationship between education and economic growth (Isola, 2012).
In addition to education’s contribution to national economic growth, it also plays a significant role in reducing income inequality, according to research by Phillipe, Peter, and Fabrice (2011) and Kakar, Khilji, and Khan (2011). They determined that educational achievement and human capital development would positively reduce income inequality. In general, scholars agree that education influences economic growth by reducing the frequency of poverty, social imbalances, and income inequality. In addition, it has a good impact on the lives of the poor and needy. The 2007 World Development Report studied the impact of knowledge on development. Human capital refers to the stock of competencies, skills, knowledge, and personalities embodied in individuals that facilitate their ability to perform labor for the creation of personal, economic, and social value (OECD, 2001). Labor is one of the production factors and is also known as the workforce. Education is one of the major investments on human capital, which is why Schultz (2005) and many other American economists in the early 1960s found that investment on education is one of the significant factors responsible for the rapid growth of the American economy. They noted that a dollar spent on education results in a greater increase in their country’s GDP than a dollar spent on physical capital such as dams, roads, and streetlights. Thus, human capital is a production method in which extra investment results in increased output. Human capital is durable, yet it cannot be transferred like land or other forms of fixed capital. Society will see significant economic growth as a result of efforts to stimulate investment in human capital (Olaniyan and Okemakinde, 2008). Adebayo (2009) stated that a nation’s human resources, as opposed to its physical, capital, and material resources, define its character and rate of economic and social growth. Human capital is comparable to “physical means of production,” such as factories and equipment. According to (Babalola, 2003), the rationale behind investment in human capital is based on the following arguments: that the new generation must be given an appropriate portion of the knowledge already accumulated by the previous generation; that the new generation must be taught how existing knowledge should be used to develop new products to attract new customers; and that the new generation must be given an appropriate portion of the knowledge already accumulated by the previous generation.
1.2 DESCRIPTION OF THE PROBLEM
Over the years, Nigeria, one of the largest economies in Africa, has struggled with human capital development. Nigeria has not realized her full development potential in terms of sustainable human capital development or people-oriented development, as have many other affluent economies of the world who have taken a similar strategy to increase economic growth. Large portions of Nigeria’s population, estimated at 182,2 million by the World Bank in 2016, continue to have poor levels of literacy and limited access to education and healthcare. This might be ascribed to the fact that there is no general agreement on the measures used to quantify human capital development, such as Education, Health, Productivity, and youth empowerment. However, life expectancy as an important health measure whose significance as a component of human capital development continues to rise has been underutilized, despite the fact that it remains severely low in a number of sub-Saharan African nations, including Nigeria. In a large number of current research, enrollment rates at the elementary, secondary, and postsecondary levels have not been incorporated into a unified model analyzing human capital development and economic growth (for example see, Adeyemi and Ogunsola 2016; and Jaiyeoba, 2015) whereas primary school enrolment feeds into secondary school enrolment, and secondary school enrolment feeds into tertiary school enrolment over time, all three school enrollment rates are significant as human capital development measures and must thus be employed in a single model. In addition, to the best of the researchers’ knowledge, no recent study has investigated the impact of human capital development on Nigeria’s economic growth.
1.3 OBJECTIVE OF THE RESEARCH
This study’s primary objective is to examine the impact of proper and effective class management on the teaching and learning process. Specifically, the study aims to:
1. Determine the obstacles to growth and development in Nigeria
2. Determine the percentage of human capital that exists in Nigeria
3. Analyze the influence of human capital on Nigeria’s economic growth and development
1.4 RESEARCH QUESTIONS
The following research questions were developed to steer this study to a valid conclusion:
What are the impediments to growth and development in Nigeria?
2. What is the proportion of human capital existing in Nigeria?
3. Does human capital have a substantial impact on Nigeria’s economic growth and development?
1.5 RESEARCH HYPOTHESIS
Human capital has no substantial impact on economic growth and development in Nigeria.
Human capital has a huge influence on Nigeria’s economic growth and development.