SKILL ACQUISITION PROGRAMMES AND THE GROWTH OF NIGERIAN ECONOMY

Abstract

This study examined the effect of skill acquisition programmes on the economic growth of Nigeria. Skill acquisition programmes are supposed to promote economic growth, increase productivity, and self-employment in any nation.  However, it has not been able to effectively perform those roles in Nigeria as evidenced by unsteady economic growth rate, rising unemployment rate, and low per capita income.  The specific objectives of this study were to ascertain the effect of skill acquisition programmes on economic growth and the direction of causality between skills acquisition and economic growth. Secondary data for the period 1994 to 2016 were used and sourced from the World Development Indicators, Index Mundi and Macrotrends. The method of least squares was employed in estimating the multiple regression models used. The model estimation was done with the aid of EViews8. Pair-wise granger causality test was used to test the causality link. Major findings were that: i. skill acquisition programmes have significant positive effect on economic growth; ii, no causality relationship between skills acquisition and economic growth; iii, control variable of bank lending rate has significant negative effect on economic growth. It is recommended that: i, the Government should maintain dynamic skill acquisition policies where skills acquisition must be made mandatory at all levels of education from primary to tertiary institutions to ensure that every citizen acquires skills to facilitate employment generation, increased productivity and economic growth; ii, bank lending rate should be maintained at levels that support economic growth at all times.