Economic Performance and Human Development in Nigeria

Abstract

The study empirically examines economic performance and human development in Nigeria, employing the Human Development Theory as its conceptual framework. The stationarity status of the variables was investigated using the Augmented Dickey Fuller unit root test, revealing the presence of unit roots which were then differenced to achieve stationarity. Subsequently, the long-run equilibrium relationship among the variables was assessed using the Johansen cointegration test, confirming the existence of cointegration among them. Granger causality tests and regression analysis were conducted to further explore the relationships. Education expenditure was used as a proxy for human development, while RGDPGR, INF, and UNEPL were employed as proxies for economic performance indicators. The results indicate that the regressors have a positive and significant impact on human development, suggesting a bidirectional causality between economic performance and human development in Nigeria. Moreover, the regression results demonstrate that education expenditure significantly and positively influences Nigeria's economic performance, particularly in terms of RGDPG and INFL. Based on these findings, the study recommends strategies such as fostering job creation, sustaining growth, ensuring adequate skill acquisition to match the growth in capital-intensive infrastructure, and diversifying the economy to enhance productivity and foster economic growth.

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