HUMAN CAPITAL DEVELOPMENT AND MANUFACTURING OUTPUT IN NIGERIA

This study examines the impact of human capital development on manufacturing output in Nigeria, focusing on government expenditure on education, government expenditure on health, and private sector staff training. Using annual time series data from 1986 to 2023, the research employs descriptive statistics and the Auto Regressive Distributed Lag (ARDL) model to analyze both short-run and long-run relationships among the variables. The findings reveal that government expenditure on education has a significant positive effect on manufacturing output in both the short and long term, highlighting the role of education in improving workforce skills and productivity. Government spending on health also shows a positive long-term impact, as healthier workers tend to be more efficient and contribute to sustained industrial performance. Additionally, private sector staff training has a strong short-term influence on manufacturing output, although its long-term effect is less pronounced without ongoing investment. The study concludes that both public and private sector efforts in human capital development are essential for boosting Nigeria’s manufacturing sector. Investing in education, health, and workforce training is crucial for achieving long-term industrial growth and economic development.