Human Capital and Employment Dynamics for Poverty Reduction in Nigeria

The study investigated the impact of human capital and employment dynamics on poverty reduction in Nigeria over the period 1980–2025. The aim was to examine how improvements in human capital development and labour market conditions influence poverty outcomes within the Nigerian economy. The scope of the study covers Nigeria using annual time series data sourced from the World Development Indicators, Central Bank of Nigeria Statistical Bulletin, and National Bureau of Statistics. The study adopted an ex post facto research design, utilizing the Dynamic Ordinary Least Squares (DOLS) technique to estimate long-run relationships among the variables. Pre-estimation tests such as unit root and cointegration tests, alongside post-estimation diagnostic tests, were conducted to ensure model validity and robustness. The theoretical framework of the study is anchored on the Capability Approach by Amartya Sen (1985), the Endogenous Growth Theory associated with Romer (1986), Lucas (1988), and Rebelo (1991), and the Kuznets Hypothesis (1955), all of which explain the role of human capabilities, growth dynamics, and inequality in poverty outcomes. The findings of the study revealed that human capital and employment exert significant negative effects on poverty, while technological progress shows mixed effects depending on structural conditions in the economy. The study concluded that poverty reduction in Nigeria is strongly driven by improvements in human capital and employment creation, while technological progress requires inclusiveness to be effective. Therefore, the study recommended increased investment in education and health, expansion of labour-intensive employment opportunities, and implementation of inclusive digital and skill development policies.