Human Capital Development

Human capital development plays a role in promoting productivity growth, lowering poverty rates, and sustaining economic growth. Achieving Nigeria's lofty goals for poverty reduction depends on building human capital. Nigeria has made some socioeconomic progress recently, but the World Bank's 2020 Human Capital Index put the country at 150 out of 157 in terms of human capital development.

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Score Cards

168th

of 173 Countries in the Human Development Index (2020)

0.36

Human Capital Index Score (2020)(Scale 0-1)

133 Millions

Nigerians multidimensionally poor

86th

of 117 Countries in the Digital Quality of Life Index (2022)

118th

of 146 Countries in the World Happiness Index (2022)

88

out of 100 children born in Nigeria survive to age 5

66%

of 15-year olds will survive until age 60

37

of 100 children are at risk of cognitive and physical limitations that can last a lifetime.

168th

of 173 Countries in the Human Development Index (2020)

0.36

Human Capital Index Score (2020)(Scale 0-1)

133 Millions

Nigerians multidimensionally poor

86th

of 117 Countries in the Digital Quality of Life Index (2022)

118th

of 146 Countries in the World Happiness Index (2022)

88

out of 100 children born in Nigeria survive to age 5

66%

of 15-year olds will survive until age 60

37

of 100 children are at risk of cognitive and physical limitations that can last a lifetime.

Summary

Human capital development plays a role in promoting productivity growth, lowering poverty rates, and sustaining economic growth. Achieving Nigeria’s lofty goals for poverty reduction depends on building human capital. Nigeria has made some socioeconomic progress recently, but the World Bank’s 2020 Human Capital Index put the country at 150 out of 157 in terms of human capital development.

The country continues to face massive developmental challenges, including the need to reduce the dependency on oil and diversify the economy, address insufficient infrastructure, build strong and effective institutions, as well as address governance issues and public financial management systems.

Inequality, in terms of income and opportunities, remains high and has adversely affected poverty reduction. The lack of job opportunities is at the core of the high poverty levels, regional inequality, and social and political unrest. High inflation has also taken a toll on household’s welfare and high prices in 2020-2022 are likely to have pushed an additional 8 million Nigerians into poverty.

The importance of human capital development has become a motivating factor for many, particularly its effect on growth and development. This importance led the Organization for Economic Co-operation Development (OECD) to define it in 2001 as the stock of competencies, skills, knowledge and personality attributes embodied in individuals which facilitate their ability to perform labour for the creation of personal, economic and social value.

Nevertheless, policies to bolster human capital development in Nigeria cannot operate in a vacuum; for example, efforts to rebuild Nigeria’s labour market after the COVID-19 crisis will be essential to ensure the skills and talents of young Nigerians can be put to good use. This way, building human capital can also help to foster inclusive growth, accelerate poverty reduction, and create a better future for all Nigerians.

Sources: WorldBank, OECD, AFDB, HCD