Infrastructure and human capital development: an empirical analysis

Main Article Content

Chinwendu Benedette Onugha
Abimbola Oluwaseun Oladipo

Abstract

For years, Nigeria has ranked low in human capital development, largely due to inadequate infrastructure that needs improvement. In light of this, this study empirically examines the impact of infrastructure on human capital development in Nigeria using data sourced from the World Bank's Development Indicators. The data covers the period 1999 to 2022, and the analysis uses the vector error correction mechanism (VECM) method. Findings indicate that water access and tax revenue have positive but insignificant impacts on HDI, while internet access and population growth have significant positive impacts. Conversely, electricity access has a negative and insignificant impact on human capital development in Nigeria. Therefore, this study recommends that the government provide adequate infrastructure facilities for the well-being of its citizens.

Article Details

How to Cite
Onugha, C. B., & Oladipo, A. O. (2026). Infrastructure and human capital development: an empirical analysis. Economic: Journal Economic and Business, 5(2), 432–442. https://doi.org/10.56495/ejeb.v5i2.1629
Section
Articles

References

Acheampong, A. O., Opoku, E. E. O., Dzator, J., & Kufuor, N. K. (2022). Enhancing human development in developing regions: Do ICT and transport infrastructure matter? Technological Forecasting and Social Change, 180, 121725. https://doi.org/10.1016/j.techfore.2022.121725

Adeshina, T., Alaje, C., & Idaeho, R. (2020). Infrastructural development in Nigeria: Challenges for private sector participation and the way forward. https://www.jacksonettiandedu.com

African Development Bank Group. (2018). Africa infrastructure development index 2018. https://www.afdb.org

Agenor, P. (2006). A theory of infrastructure-led development. Center for Growth and Business Cycle Research, University of Manchester. http://www.ses.man.ac.uk/cgbcr/discussi.htm

Amador-Jimenez, L., & Willis, C. J. (2012). Demonstrating a correlation between infrastructure and national development. International Journal of Sustainable Development & World Ecology, 19(3), 197–202. https://doi.org/10.1080/13504509.2011.644639

Becker, G. S. (1964). Human capital: A theoretical and empirical analysis with special reference to education. Columbia University Press.

Becker, G. S. (1993). Human capital: A theoretical and empirical analysis with special reference to education (3rd ed.). University of Chicago Press.

Erasmus, E. G. (2021). Public expenditure and human capital development in Nigeria. Journal of Accounting and Financial Management, 7(2), 26–43.

Ishizuka, F. (2025). Does infrastructure improve human well-being? Analysis of Japan's subnational human development index (1960–2020) (JICA Ogata Research Institute Discussion Paper No. 36). JICA Ogata Research Institute for Peace and Development. https://www.jica.go.jp/english/jica_ri/publication/discussion/__icsFiles/afieldfile/2025/03/17/Discussion_Paper_No36_1.pdf

Kristiyanto, S., & Wuryaningrum, R. S. (2017). How infrastructure development can create a better human development index. In The 6th IRSA International Institute.

Kusharjanto, H., & Kim, D. (2011). Infrastructure and human development: The case of Java, Indonesia. Journal of the Asia Pacific Economy, 16(1), 111–124. https://doi.org/10.1080/13547860.2011.539407

Mincer, J. (1974). Schooling, experience, and earnings. Columbia University Press.

Nchofoung, T. N., Asongu, S. A., Njamen Kengdo, A. A., & Achuo, E. D. (2022). Linear and non-linear effects of infrastructures on inclusive human development in Africa. African Development Review, 34(1), 81–96. https://doi.org/10.1111/1467-8268.12619

Nigeria Sovereign Investment Authority. (2022). NSIA funds: Nigeria infrastructure fund. https://nsia.com.ng/nigeria-infrastructure-fund/

Nugroho, S. S. (2015). The roles of basic infrastructure on poverty alleviation in Indonesia. Kajian Ekonomi Dan Keuangan, 19(1), 27–44. https://doi.org/10.31685/kek.v19i1.19

Nwokoye, E. S. (2019). Manpower development issues in Nigeria. In U. R. Ezenekwe, A. G. Metu, E. S. Nwokoye, & O. D. Maduka (Eds.), Structure and problems of the Nigerian economy (pp. 252–278). Fab Anieh Nig. Ltd.

Nwokoye, E. S., Onugha, C. B., & Kalu, C. U. (2020). Drivers of human capital development: Evidence from Nigeria. Timisoara Journal of Economics and Business, 13(1), 15–30.

Okinono, O., Salleh, D., & Din, B. (2015). Infrastructure and human development in Nigeria: A study of the South-South geo-political zone. IOSR Journal of Humanities and Social Science, 20(9), 65–73.

Onikosi-Alliyu, S. O., & Muhammed, H. A. (2025). Impact of digital infrastructure on human capital development in Nigeria. Gusau Journal of Economics and Development Studies, 6(1), 25–42. https://doi.org/10.57233/gujeds.v6i1.03

Osakede, U. A., & Adeleke, O. K. (2022). Government borrowing, infrastructure and human development in Africa: A panel threshold approach. In Financial crises, poverty and environmental sustainability: Challenges in the context of the SDGs and COVID-19 recovery (pp. 81–92). Springer International Publishing. https://doi.org/10.1007/978-3-030-87417-9_6

Sapkota, J. B. (2014). Access to infrastructure and human development: Cross-country evidence (Working Paper No. 70). JICA Research Institute.

Schultz, T. W. (1961). Investment in human capital. The American Economic Review, 51(1), 1–17.

Shuaibu, M., & Popola, O. T. (2016). Determinants of human capital development in Africa: A panel data analysis. Oeconomia Copernicana, 7(4), 523–549. https://doi.org/10.12775/OeC.2016.030

Spence, M. (1978). Job market signaling. In Uncertainty in economics (pp. 281–306). Academic Press. https://doi.org/10.1016/B978-0-12-214850-7.50025-5

United Nations Development Programme. (2015). Overview of human development report 2015: Work for human development. https://www.undp.org

United Nations Development Programme. (2022). Uncertain times, unsettled lives: Shaping our future in a transforming world. https://www.undp.org/uncertain-times-unsettled-lives-shaping-our-future-in-a-transforming-world/

United Nations Development Programme. (2023). Workshop on the design of the national human development report on energy vulnerabilities in the Kyrgyz Republic. https://www.undp.org/sites/g/files/zskgke26/files/2023-02/CK_Slides_FINAL_ENG.pdf

World Bank. (1994). World development report 1994: Infrastructure for development. Oxford University Press for the World Bank. https://openknowledge.worldbank.org/handle/10986/5977

World Bank. (2019). Nepal infrastructure sector assessment: Private sector solutions for sustainable infrastructure development. https://www.worldbank.org/

World Bank. (2023). Understanding poverty: Digital development. https://www.worldbank.org/en/topic/digitaldevelopment/overview

World Economic Forum. (2018). The global competitiveness report 2017–2018: Nigeria profile. https://www3.weforum.org