The Analysis of Impact of Investment in Education on Economic Growth in Nigeria: Veracity of Association of Staff Union of University of Nigeria’s agitation

Abstract

This study explored empirically the Impact of Investment in Education on Economic Growth in Nigeria between 1975 and 2012. The study is borne out of the curiosity to determine as claimed by the UNDP and other multilateral institutions the prominent roles play by the education in the growth and development of a developing nation like Nigeria. More so, the agitation of Association of Staff Union of Nigeria University of Nigeria (ASUU) that the federal government should invest more to develop infrastructures in our University. The research took the form of analytical/quantitative dimension; the quantitative technique is used in analysing data collected. Restricted Error Correction model is used with the aid of Econometrics View Package (E- view). In the study, Real Gross Domestic Product (RGDP) is used as proxy for economic growth, Government Capital Expenditure on Education (GKEE), Government Recurrent Expenditure on Education (GREE) are proxy to investment in human capital, Gross Capital Formation (GCF) as proxy for Capital and Post Primary School enrolment as a proxy for labour. The empirical analysis revealed that investment in human capital, in form of education and capacities building through training have positive impacts on economic growth in Nigeria. It is therefore, recommended that for effective and speedy economic growth and development in Nigeria, the government, should shoulder the major responsibility of financing primary, secondary and tertiary education, as these provide solid foundation for human capital formation which no country can do anything meaningful without. The other stakeholders like beneficiaries (students/parents), employer of labour, non-governmental organisation, community-based organisation should also collaborate with government to provide sufficient finance for the development of this sector as we all know that the sector has its product as merit-goods. The ASUU's agitation and educational financing policy prescription on funding of the educational system most especially University (Agent of Change) should be jealously observed and implemented