The Impact of Human Capital Cost on Gross Domestic Product (GDP) in Nigeria

Abstract

This study aimed at determining the extent to which human capital cost influences gross domestic product in Nigeria. Hitherto, human resource was treated as expenses and written off in profit and loss account. No recognition was given to the skills of labour in human resource accounting and recently in intellectual capital. The research adopted a survey design for the study. The data collected were tabulated and analyzed using the Ordinary Least Square (OLS). The study revealed that human capital costs mirrored by acquisition, development, remuneration and protection costs do affect significantly gross domestic product in Nigeria. The study recommended that there is urgent need for the installation and maintenance of total quality management in Nigeria to enable it remains competitive in the global market. This is because employee’s education, training and development are the key vehicle for building the economy and employee’s capabilities. Finally, government should try to understand and appreciate the value of human capital as it is the most important determinant of it success.