Public Education Expenditure and Economic Growth in Nigeria: 1970 - 2010

Theoretical and empirical evidences support the prime role of public education expenditure in rapid and persistent economic growth. However, available statistics in Nigeria does not seem to support this view. An average of 5.72 per cent of public expenditure was spent on education between 1970 and 2010. During the same period, economic growth was not only inconsistent, but averaged 0.6 per cent. Public education expenditure, no doubt promotes educational attainment which could be regarded as a proximate target. It could also have a direct effect on economic growth through the multiplier effect of government spending. These relationships are seldom captured by empirical studies especially those based on Nigerian data. Also issues such as endogeneity problem associated with growth empirics are often overlooked. This is evident in the specification of empirical models and consequently the lack of consensus in the results obtained. In a nutshell, the channel through which public education expenditure affects economic growth is not yet well understood. This study examines the direct and indirect effects of both public recurrent and capital expenditure on education and economic growth in Nigeria from 1970 to 2010.The Instrumental Variable Two Stage Least Squares (IV2SLS) estimation technique which ensures both unbiased and consistent coefficient estimates is employed. The result reveals that public education expenditure has both direct and indirect effects on economic growth. The indirect channel has been more relevant for economic growth in Nigeria. Thus, total public education expenditure can promote economic growth without necessarily first improving education attainment.. The study also reveals that public recurrent education expenditure (pree) and public capital education expenditure (pcee) have different effects on economic growth. The regression results suggest that capital expenditure has greater effect on education (proxied by secondary school education) while recurrent expenditure has greater effect on economic growth. However, to maximize the benefits from public education expenditure, strategies that ensure greater efficiency of public education expenditure were suggested

Public Education Expenditure and Economic Growth in Nigeria: A Disaggregated Approach

This study examines the effects of the components of public education expenditure on both education attainment and economic growth in Nigeria from 1970 to 2010.The Instrumental Variable Two Stage Least Squares estimation technique is employed to test the hypothesis that both recurrent and capital expenditure on education have different effects on education attainment and economic growth. The result reveals that public education expenditure has both direct and indirect effects on economic growth. The indirect channel has been more relevant for economic growth in Nigeria. Thus, total public education expenditure can promote economic growth without necessarily first improving education attainment.. The study also reveals that recurrent and capital expenditure on education have different effects on economic growth. While recurrent expenditure had a negative impact on education, capital expenditure was found to have appositive impact. On the contrary, recurrent education expenditure had a positive and significant impact on economic growth while capital expenditure had a negative impact. However, to maximize the benefits from public education expenditure, strategies that ensure greater efficiency of public education expenditure are suggested

Insecurity and Socio-Economic Development in Nigeria

This paper examines the pertinent issue of insecurity in Nigeria and its implication for socio-economic development. Available data on the level and dimensions of insecurity in Nigeria reveals an increase over time, which constitutes serious threat to lives and properties, hinders business activities and discourages local and foreign investors, all which stifles and retards Nigeria‟s socio-economic development. This rising wave of insecurity has not abated but has assumed a dangerous dimension which is threatening the corporate existence of the country as one geographical entity. In the light of the above the paper recommends that government must be proactive in dealing with security issues and threats, through modern methods of intelligence gathering, and sharing among security personnel, training, logistics, motivation, and deploying advanced technology in managing security challenges. The real solution lies in government accelerating the pace of economic development through creating an economy with relevant social, economic and physical infrastructure to support business and industrial growth

Toward Nigeria’s Vision 20:2020: Public Investment in Human Capital and Outcomes

The paper examines Nigeria’s public investment in relation to human capital development outcomes between 2009 and 2012. The aim is to analyse the extent to which human capital development responds to the smart initiative by the Nigerian Government in its drive towards achieving Nigeria’s vision 20:2020. The paper adopted a comparative approach. Human capital in Nigeria was compared with those of Belgium, Poland, Saudi Arabia and Sweden that have been in contention for the 20th largest economy since 2009. The paper found out that the huge investment in education and health in 2011 and 2012 has produced mixed results in human capital development. Some of the challenges identified as hindrances to the achievement of the set targets include; inadequate funding, corruption and child labour. Therefore, the paper concludes that a new law - the Project Implementation Continuity Act which was initiated should be fully implemented. This will ensure that all projects started must be completed before new ones are initiated. This will go a long way in ensuring that the required level of human capital that will engender sustainable economic growth and development are established. Keywords: Public Sector Investment, Human Capital, Sustainable Economic Growth

Remittance Expenditure Patterns and Human Development Outcomes in Nigeria

This paper investigates the relationship between remittance expenditure patterns and its human development implications in migrant sending communities of Nigeria. In Nigeria, migrant sending communities spread across the country and the expenditure patterns of remittance receipts are likely to differ in characterization along states or geographical regions. This possibility is expected to significantly affect the human development outcomes of remittance expenditures in these communities within the country. The paper therefore probes into the extent to which human development outcomes in migrant sending communities of Nigeria can be associated with remittance expenditure patterns across the country. The study employs survey data from the World Bank Migration and Remittances Household Surveys in Sub-Saharan Africa, 2009/2010. Descriptive analyses of the data were conducted to achieve the objectives of the study. The results clearly exhibit remittance expenditure patterns across the regions of the country that are largely similar. The findings therefore provide a basis for a harmonized policy approach for channeling household remittance receipts into greater productive uses. Keywords: Remittance, Nigeria, expenditure patterns, human development, survey dat

Toward Nigeria’s Vision 20:2020: Public Investment in Human Capital and Outcomes

The paper examines Nigeria’s public investment in relation to human capital development outcomes between 2009 and 2012. The aim is to analyse the extent to which human capital development responds to the smart initiative by the Nigerian Government in its drive towards achieving Nigeria’s vision 20:2020. The paper adopted a comparative approach. Human capital in Nigeria was compared with those of Belgium, Poland, Saudi Arabia and Sweden that have been in contention for the 20th largest economy since 2009. The paper found out that the huge investment in education and health in 2011 and 2012 has produced mixed results in human capital development. Some of the challenges identified as hindrances to the achievement of the set targets include; inadequate funding, corruption and child labour. Therefore, the paper concludes that a new law - the Project Implementation Continuity Act which was initiated should be fully implemented. This will ensure that all projects started must be completed before new ones are initiated. This will go a long way in ensuring that the required level of human capital that will engender sustainable economic growth and development are established. Keywords: Public Sector Investment, Human Capital, Sustainable Economic Growth

Toward Nigeria's Vision 20:2020:Public Investment in Human Capital and Outcomes

The paper examines Nigeria’s public investment in relation to human capital development outcomes between 2009 and 2012. The aim is to analyse the extent to which human capital development responds to the smart initiative by the Nigerian Government in its drive towards achieving Nigeria’s vision 20:2020. The paper adopted a comparative approach. Human capital in Nigeria was compared with those of Belgium, Poland, Saudi Arabia and Sweden that have been in contention for the 20th largest economy since 2009. The paper found out that the huge investment in education and health in 2011 and 2012 has produced mixed results in human capital development. Some of the challenges identified as hindrances to the achievement of the set targets include; inadequate funding, corruption and child labour. Therefore, the paper concludes that a new law - the Project Implementation Continuity Act which was initiated should be fully implemented. This will ensure that all projects started must be completed before new ones are initiated. This will go a long way in ensuring that the required level of human capital that will engender sustainable economic growth and development are established