IMPACT OF GOVERNMENT EXPENDITURES ON HUMAN CAPITAL DEVELOPMENT IN NIGERIA

The main objective of this study is to investigate the impact of government expenditures on human capital development in Nigeria from 1990 to 2018. While, the specific objectives are to ascertain government education recurrent expenditures on human capital development in Nigeria, evaluate government health recurrent expenditures on human capital development in Nigeria, examine government education capital expenditures on human capital development in Nigeria and determine government health capital expenditures on human capital development in Nigeria. The study adopted and used time-series data (secondary data) to investigate the potential impact of government expenditure on human capital development in Nigeria. Based on the research questions and objectives of the study, results show that all government health and education expenditures indicators have a positive impact on human capital development in Nigeria that is government education recurrent expenditure, government health recurrent expenditure, government education capital expenditure, and government health capital expenditure and that the all the variables were statistically significant in explaining the variation in human capital development in Nigeria, while, the show that all government health and education expenditure indicators have a positive impact on human capital development in Nigeria that is government education recurrent expenditure, government health recurrent expenditure, government education capital expenditure, and government health capital expenditure. However, government education recurrent expenditure and government health recurrent expenditure have an insignificant impact on human capital development in Nigeria while government education capital expenditure and government health capital expenditure have a significant impact on human capital development in Nigeria. Therefore, the study recommends that government should adopt a shorter and medium-term policy plan for health and education capital expenditures following the positive and significant impact of health and education capital expenditures on human capital development in Nigeria. This will also help in short-term periodic assessment and evaluation of health and education capital projects. On the other hand, in terms of government health and education recurrent expenditures, the government should adopt medium and long-term policy plans since their impact though but insignificant in human capital development in Nigeria in the short run.