Analysis Of The Impact Of Federal Government Education Expenditure On Human Capital Development In Nigeria: 1990-2015

This study examined the impact of Federal Government education expenditure on human capital development in Nigeria from 1990 to 2015. We employed a multiple regression model of Ordinary Least Squares (OLS) using secondary data. The stationarity status of the data was examined using Augmented Dickey Fuller (ADF), the long run relationship established using the cointegration test and Error Correction Mechanism (ECM) technique was also employed for the short run relationship. The variables tested include; Human Development Index (HDI) which is our dependent variable, Federal Government Expenditure onEducation (FGEE), Federal Government Expenditure on Health (FGEH), and Federal Government Recurrent Expenditure on other Social and community Services (FGRESCS) all serve as our explanatory variables. The results of the regression show that there is positive and significant relationship between FGEE and human capital development was proxied by HDI. The study therefore, recommends that government should see it as a matter of priority to increase the funding in the education sector and try all means possibleto block leakages by ensuring that funds are adequately and efficiently utilized in the sector.