The picture of Nigeria and its potential to be a great nation was presented in this column last week. It is heartwarming and inspiring to recognize Nigeria’s enormous natural and human resources, but also disheartening to know that these resources are lying idle, with some being plundered. As earlier buttressed, humans are the most important resource, which galvanizes the transformation of other resources to fast-track societal development. How qualitative is Nigeria’s human resource? The major qualitative indicator of human resources in any society is the level of its human capital. Human capital refers to the stock of competencies, skills, knowledge, and personality attributes that individuals embody.
These attributes are responsible for creating a high-quality labor force with appreciable economic, social, and personal values. Labor is the most important factor of production. Human capital is therefore a primary factor that converts all resources for the use and benefits of mankind and national development. How is Human capital developed? What is the missing link between greatness and Nigeria? How can the missing link be established?
How is human capital developed? Massive public and private investments in the health and education of young people develop human capital. Human capital is periodically evaluated to guide policymakers. Nigeria’s human capital index in 2020 averaged 0.36 (pre-pandemic) as reported by the World Bank (https://businessday.ng/business-economy/article/nigeria-records-0-36-points-in-world-banks-2020-human-capital-index). Still, in 2024, Nigeria’s World Bank Human Capital Index (HCI) remains low at 0.36 (36%).
With a score of 0.36 in 2020, Nigeria ranked 168 out of 174 countries, reflecting poor socio-economic outcomes, including a learning poverty rate of 70 percent, immunization coverage of 36 percent, an under-5 mortality rate of 110 deaths per 1,000 live births, and a stunting rate of 39.5 percent. In 2023/2024, Nigeria ranked 161 out of 193 nations, placing it in the low human development category.
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The result indicates that the earning potential of Nigeria’s youngest generation over their lifetime is only 36 percent of what it could be with complete education and good health. In other words, the country is losing 64 percent of its productivity by failing to fully invest in the human capital of these young Nigerians. This result of Nigeria’s human capital index looks discouraging, dispiriting, and gloomy. However, the reality is that several Nigerians are making waves and excelling in various human endeavors globally. This may not be unrelated to the significant growth in the country’s human resources. The relatively small number of Nigerians with a high human capital index is sufficient to make Nigeria’s name resonate across every continent in the World. This may be the positive aspect of the population explosion. These few Nigerians are endowed with creative capacities and innovative thinking, thereby positively impacting the nation’s image at home and abroad. Who are these Nigerians?
These Nigerians are performing exceptionally well in their various endeavors. Some of them are duly elected people into various political offices in the diaspora. Citizens of their host countries elected such Nigerians in Europe and America for their leadership qualities. As of 2019, in the United Kingdom alone, nine prominent Nigerians had been elected as mayors or British Members of Parliament. Names such as Chuka Umunna, Helen Grant, Abimbola Afolami, Kate Osamor, and Kemi Badenoch were featured. Others were Ernest Ezeajughi, Chinyelu Susan Onwurah, and Olugbenga Babatola, among several Nigerians. In most cases, they made history as the first black persons to hold such elective posts, which were hitherto exclusively reserved for white men/women or indigenous people of such countries.
Back home, with all the resources, our country is an inch away from becoming a great and enviable country where peace, progress, tranquility, and harmony reign, comparable to those in Europe, Asia, and America. A missing link is required to bridge the gap and achieve greatness in good and accountable governance. That missing link is the development of human capital, which empowers people to think rightly and act in the right direction. When people are educationally empowered, they will be able to demand accountability and responsibility from their leadership while discharging their own. With education, people’s capacity to innovate and address societal challenges is enhanced, benefiting their communities. Good and accountable governance will be the guiding principle of an educated society where merit replaces nepotism, leadership entails service to humanity, and this is done with a high sense of responsibility.
Fortunately, the Nigerian government, under the leadership of President Ahmed Bola Tinubu, has launched a human capital initiative to unlock the country’s economic potential and drive inclusive growth. The program is an ambitious, World Bank-supported initiative aimed at accelerating inclusive economic development by strategically investing in Nigeria’s people. It provides the financial framework to deliver globally aligned, state-led interventions in primary healthcare, education, and social development. Nigeria aims to improve human capital development and achieve a top-80 ranking on the global Human Capital Index (HCI) by 2030.
While the government plays a key role in human capital development, the private sector, individuals, and corporate organizations can also make significant contributions at various levels. Nigerians in the diaspora can support the government by making massive investments in education, health, and agriculture. All hands must be on deck to support Nigeria achieve its enviable goal of top-80 by 2030.
If we can achieve a significant improvement in the human capital index, all unexplored and untapped resources – natural and intellectual – will make Nigeria great in all developmental ramifications. May we see it happen in our lives.
