Impact of Educational Sector on Human Capital Development in Nigeria

Abstract

The main objective of this study is to ascertain the impact of educational sector on human capital development in Nigeria. Given the co integrated nature of variable of the model, error correction medoel was adopted to ascertain the role of education sector on human capital formation. A variable such as human capital (HCAP) is used as dependent variable while Education Funding (EDUF), School Enrolment (SER), Graduate Turnout (GROT), School Drop Out Rate (SDR) and Health Expenditure (HEE) are independent variables. Findings from the study shows that Education funding and school enrolment increase and graduate turn-out rate has significant positive impact on human capital development while School drop has a negative impact. The study recommends that Governments should adopt necessary measures to empower its people productively through education as a means of putting their economies on the path of transformation. Stepping up investment in education and skill training is a key step to achieving improved human capital base in the region.