Human Capital, Infrastructure and Economic Growth in Nigeria: An Empirical Evidence

Abstract

Human capital and Infrastructure plays a crucial role in promoting economic growth and thereby contributes to the reduction of economic disparity, poverty and deprivations in a country. Empirically, a variety of studies considers that greater access of the poor to education and health services, water and sanitation, road network and electricity is a principal agent of economic growth. For too long in the past, an undue emphasis has been given to Nigeria's enormous oil resources as a key engine of economic growth. Knowledge capital is fast overtaking physical capital as a determinant of growth. As a fast growing economy Nigeria needs to determine the indices of growth. This study therefore examines the role of human capital and infrastructure on economic growth in Nigeria within a co integration and error-correction modeling framework during the period 1970-2010. Human capital is found to be positive and statistically significant to growth. The infrastructure variable (electricity) is positive but statistically insignificant. This result is not entirely surprising considering the unreliable, epileptic and unstable supply of energy in the country.