Asian Journal of Economics, Finance and Management

This study examines human capital development and economic growth in Nigeria. The time series data was sourced from Central Bank of Nigeria Statistical Bulletin and World bank data base from 1981 - 2020. Human capital development to gross domestic product (GDP) was modeled as the function of total government expenditure on education and health, gross capital formation, and life expectancy. The stationarity of the time series was tested using the Augmented Dickey Fuller Test. Using the Autoregressive Distributed Lag (ARDL) framework; the bounds testing analysis indicated the existence of co-integration between economic growth and human capital development indicators. The study also found total government expenditure on education having positive and insignificant long-run relationship with GDP. Also, total government expenditure on health was found having positive insignificant long-run relationship with GDP. Equally, gross capital formation was found having positive insignificant relationship with GDP at the long-run. However, life expectancy was found with a negative and insignificant long-run relation with the GDP. Thus, the study recommends that budgetary allocation to the education and health sector should be improved by both the federal and statement government. The study also recommends that governments at all levels should be encouraged in utilizing development templates like Publication-Private-Partnership (PPP) in fast-tracking development in strategic sectors like that of the education and health.