International Journal of Academic Research in Business and Social Sciences April 2014, Vol. 4, No. 4 ISSN: 2222-6990 25 www.hrmars.com Human Capital Development and Economic Growth: The Nigeria Experience God’stime Osekhebhen Eigbiremolen 1 Department of Economics, University of Nigeria, Nsukka E-mail: eigbiremolen@gmail.com Uchechi Shirley Anaduaka Department of Economics, University of Nigeria, Nsukka E-mail: usanaduaka@gmail.com DOI: 10.6007/IJARBSS/v4-i4/749 URL: http://dx.doi.org/10.6007/IJARBSS/v4-i4/749 Abstract This study employs the augmented Solow human-capital-growth model to investigate the impact of human capital development on national output, a proxy for economic growth, using quarterly time- series data from 1999-2012. Empirical results show that human capital development, in line with theory, exhibits significant positive impact on output level. This implies that human capital development is indispensable in the achievement of sustainable economic growth in Nigeria, as there is an increase in economic performance for every increase in human capital development. The results further reveal a relatively inelastic relationship between human capital development and output level. Going forward, government and policy makers should make concerted and sincere efforts in building and developing human capacity through adequate educational funding across all levels. This remains the major way of attaining sustainable economic growth and development in any economy. Keywords: Human capital development, economic growth, expenditure on education. JEL Classification: E2, E6, H52, O11. 1.0 Introduction The concept of human capital refers to the abilities and skills of human resources of a country, while human capital development refers to the process of acquiring and increasing the number of persons who have the skills, education and experience that are critical for economic growth and development of a country’s economy (Okojie, 2005). Also, Ejere (2011) posited that human capital refers to the human factor in the production process; and consists of the combined knowledge, skills or competencies and abilities of the workforce. Of all factors of production, only human beings are capable of learning, adapting or changing, innovative and creative. Human capital formation or development, following Harbison (1973), can be seen as the deliberate and continuous process of acquiring requisite knowledge, skills and experiences that 1 Corresponding author