Human Capital Development and Poverty Alleviation in Nigeria: Evidence from ARDL Model

Omolara Campbell () and Toluwalope Ogunro
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Omolara Campbell: Department of Economics and Development Studies, Postal: Lead City University, Ibadan, Oyo State, Nigeria, https://www.lcu.edu.ng/index.php/lead-city-journal-of-the-social-sciences
Toluwalope Ogunro: Department of Economics and Development Studies, Postal: Lead City University, Ibadan, Oyo State, Nigeria, https://www.lcu.edu.ng/index.php/lead-city-journal-of-the-social-sciences

Lead City Journal of the Social Sciences (LCJSS), 2022, vol. 7, issue 1, 112-123

Abstract: Theoretical and empirical research has emphasized that education is the most powerful instrument for developing and empowering citizens to master their social, cultural environment and compete for survival. However, most of the developing economies, although conscious of the transformation, that education brings, are yet to reap its full potential. A recent statistic on the multidimensional poverty index in Nigeria coordinated by the National Bureau of Statistics (2022) indicates that 63% of persons living in Nigeria (133 million people) are multidimensionally poor. Furthermore, the incidence of monetary poverty is lower than the incidence of multidimensional poverty across most states. The 2018/19 national monetary poverty line indicates that 40.1% of people are poor. Over time, different governments in Nigeria have adopted programmes and policies to address the challenge of poverty in Nigeria, some of which are based on the empowerment of youths and women, among others. Also, education at the primary level in most states in Nigeria is financed by the government. This study ascertains whether human capital development can alleviate the poverty level of Nigerians using data that spans from 1985-2020. The autoregressive distributed lag model was employed. It was found that a long-run relationship exists between human capital development and poverty in Nigeria. In the short run, government spending on health, consumer price index, final consumption expenditure and employed persons determine poverty headcount in Nigeria. Even though findings indicate significant relationships between key variables, the study recommends the urgent need to ensure that economic growth is inclusive and sustainable in Nigeria. This can be enhanced through increased public and private sector investment in education and health.

Keywords: Human capital development; poverty; government health expenditure; consumption expenditure and consumer price index (search for similar items in EconPapers)
Date: 2022
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