Impact of institutional Quality on Human Capital Development in Nigeria

Abstract: The study examines the impact of institutional quality on human capital development in Nigeria: 1990-2024. The study was anchored on the endogenous growth model using the OLS estimator to empirically determine the impact of the explanatory variables on the dependent variable. The data series of human capital development (HCD), regulatory quality (RQ), corruption (CPI) are stationary after the first difference, while economic growth (GDP) is stationary at level. The result of findings revealed that Regulatory quality has a negative and statistically significant impact on human capital development in Nigeria. In addition, Corruption has an insignificant impact on human capital development. GDP, used here as a proxy for economic growth has a significant negative impact on human capital development. The study recommends that policymakers should, therefore, conduct a thorough review of regulatory practices affecting educational institutions, healthcare delivery, and workforce training programs. Anti-corruption bodies should implement stricter monitoring mechanisms to prevent the diversion of resources meant for human development sectors. Finally, government should prioritize public expenditure on education, healthcare, and vocational training, ensuring that growth-related revenues are channeled toward the sectors most critical to human development.