HUMAN CAPITAL DEVELOPMENT IN NIGERIA

Human capital development is a means of developing skills, knowledge, productivity and inventiveness of people through process of human capital formation. It is a people centered strategy and not goods or production centered strategy of development. The theory of human capital development emphasises how education increases the productivity and efficiency of workers by increasing the level of cognitive skills possessed by the work force. The Garry Beeker and Jacob Mincer (2001) introduced the notion that people invest in education to increase their stock of human capital. The proponents say human capabilities, which can be formed by combining innate abilities with investment in human beings (Balola, 2000).

Example of such investment includes expenditure on education, on the job training, health and nutrition. Such expenditure increase future productive capacity at the expense of current consumption. However n the past much planning in Nigeria was centered on the accumulation of physical capital or rapid growth and development, without recognition of the important role played by human capital development process. A number of defective incentive system in Nigeria resulted to the current waste of human resources and often, high incidence of poverty and greater inequality in the distribution of income.

          The stock of human capital increase in a period only when gross investment exceeds depreciation with the  passage of time, with intense use or with lack of use. The provision of education is seen as a product investment in human capital.

          An investment, which the proponents of the human capital theory considers as equally or even more equally worthwhile than that in physical capital (Ogujiuba and Adeniyi, 2003).

          The federal government of Nigeria reform agenda is anchored on the National Economic Empowerment and development strategy (NEED) document it was indicated that adult literacy rate of atleast 65% by 2007 would be attained. The NEEDS recognises the centrality of human capital development in achieving economic growth. It was described as a vital transformation tool. Therefore, the strategy aims at empowering the citizenry to acquire skills and knowledge that would prepare them for the would of work (NEEDs, 2004).

          Human capital theorists have established that basic literacy enhances the productivity of workers in low slow occupation. They further state that an instruction that demands logical or analytical reasoning or provides technical and specialised knowledge increases the marginal productivity of workers in higher ill or professional position. Moreover the greater the stock of human capital in society and consequently, the greater the increase institutional productivity and economic growth (UNDP, 1994).