lnvestment in Education and lnclusive Growth: Any Relationship for Nigeria?

Until recently,.Jhe last decade has witnessed massive economic growth in Nigeria, but the literature has proved that the growth has not been inclusive in nature. This is because, in spite of the level of growth recorded overtime, the poverty rate is still very high. This study investigates the relationship between human capital (education) and inclusive growth in Nigeria between the sample period of 1981 to 2013. The Johansen co-integration me_thod and Error Correction Mechanism (ECM) were adopted. The result reveals that human capital has a positive and significant long run relationship with inclusive growth in Nigeria. While, it showed a negative and significant relationship for public capital expenditure on education and a negative, it was not having significant relationship with public recurrent expenditure and education. The study however suggest that, f or the Nigerian economy to maximise the benefits from human capital and public expenditure on education, the government must initiate policies that will drive not only quantity and quality education, but that is all inclusive, so OJ to create more employment opportunities. An increase in employment will therefore increase income and standard ofliving, which will in tum reduce poverty and inequality