ABSTRACT 

This study investigated human capital development and poverty in Nigeria. The analysis was base on panel data regression model using National Living Standard Survey 2008. The results obtained indicate that the apriori expectation of the variables which are sex, age in years, mother education, total expenditure on education, quintile, and school enrollment were positive to the dependent variable which is poverty proxy by total expenditure of the house hold while father education, house hold size, educational group were negative in the first model. In the second model, the apriori expectations also indicates that consultation on health, transportation, hospitalization, medication, total expenditure on health were positive while mother and farther education were negative to the dependent variable which is poverty proxy by total expenditure of the house hold. The implication for this sign for model one is that A unit increase in poverty will reduce the sex, age in years, mother education, total expenditure on education, quinttr and school enrollment by the value of 0.064357, 0.0022892, 0.0044055, 2.42e-06, 0.5189335, 0.0328021 respectively. While, in the implication in the second model is that A unit increase in poverty will reduce the consultation on health, transportation on health, , health medication, total expenditure on health by the value of 2.01e-07, 5.35e-07, 9.98e-08, 2.53e-06, 2.75e-06 respectively. Statistically; the t-statistics of the variables under consideration indicates that the variables under consideration were not all significant though the overall estimates of the regression were statistically adequate. It was discovered and concluded that education and health have a significant impact on poverty reduction in Nigeria and its impacts is positive as indicated in the coefficient, f-probability, and t- probability of the regression result. And it was recommended that the study of poverty and human capital development via a simultaneous modeling framework and inequality indicators such as the GIN1 coefficient should be encouraged in the country.

TABLE OF CONTENT

Title page……………………………………………………………………ii

Certification………………………………………………………………..iii

Approval…………………………………………………………………...iv

Dedication………………………………………………………………….v

Acknowledgement…………………………………………………………vi

Abstract…………………………………………………………………..viii

Table of content……………………………………………………………x

List of tables……………………………………………………………..X11

Chapter One

Introduction

1.1 Background of the study……………………………………………...0

1.2 Statement of the problem……………………………………………..3

1.3 Research Question…………………………………………………….5

1.4 Research objectives……………………………………………………6

1.5 Research hypothesis…………………………………………………..6

1.6 Policy relevance of the study…………………………………………6

1.7 Scope of the study……………………………………………………..7

Chapter Two

Literature Review

2.1 Theoretical Literature

2.1.1 Poverty……………………………………………………………….8

2.1.2 Goals of education in Nigeria………………………………………10

2.1.3 Causality between poverty, health expenditure and health

 Status…… …………...……………………………………………12

2.1.4 Causes of poverty in Nigeria……………………………………….14

2.1.5 Human capital and poverty………………………………………...16

2.2 Empirical Literature………………………………………………….20

2.3 Limitations of previous study………………………………………...34

Chapter Three

Methodology

3.1 The mathematical frame work………………………………………35

3.2 Selection of explanatory variable…………………………………….36

3.3 Diagnostic test of the model…………………………………………..37

3.4 Data requirement and source………………………………………...37

3.5 Econometric Software…………………………………………….38

Chapter Four

Data presentation and Analysis

4.1 Diagnostic test of the model……………………………………….39

4.2 Research question analysis………………………………………..40

4.3 Hypothesis testing………………………………………………….42

4.4 Impact of education on poverty…………………………………..43

4.5 Impact of health on poverty……………………………………..43

Chapter Five

Summary of findings conclusion and recommendations

5.1 Summary of findings………………………………………………45

5.2 conclusion…………………………………………………………..46

5.3 Recommendations………………………………………………….48

References……………………………………………………………….50

Appendice………………………………………………………………..63