Nigeria’s greatest resource is not oil. It is her people
Imagine a child born in rural Nigeria today. His or her chances of reaching full potential, of becoming a healthy, educated, and productive adult, are just 34 percent. Not because the child lacks intelligence or ambition, but because the systems meant to nurture that potential are broken. Figures from the latest World Bank Human Capital Index, which ranks Nigeria 152nd out of 157 countries, reflect a national emergency.
In the struggle to revive Nigeria’s stalled economic ambitions, human capital development stands as the engine of future prosperity. Adam Smith taught that growth depends on population, capital, technology, and institutions. Plato insisted that a strong state must treat its people as assets. Yet Nigeria falls short of these ideals, and the consequences are painfully clear.
Across health, education, and workplace readiness, Nigeria’s performance is poor. Life expectancy and maternal health indicators remain low, while our literacy rate hovers around 69 percent, with adult illiteracy at 31 percent as of 2022. These deficits are mirrored in a labour force that is neither healthy nor well trained, limiting productivity and innovation.
The wider effects on society and enterprise are severe. Poverty levels continue to rise. According to the International Monetary Fund, over 56 percent of Nigerians, or roughly 129 million people, now live below the national poverty line. Real GDP per capita has fallen to an estimated $835 in 2025, down from over $3,200 a decade ago. Labour productivity dropped by nearly 39 percent between 2015 and 2016. The most recent International Labour Organization data from 2023 shows GDP per hour worked at just $7, compared to $166.1 in Luxembourg, highlighting the vast productivity gap.
When education systems fail, health systems falter, workplace environments remain unproductive, and innovation stalls. Businesses face a workforce unprepared for digital transformation, climate challenges, and global competition. This is not just a social concern, it is an economic crisis. According to the World Bank, each additional year of schooling can raise an individual’s income by up to 10 percent, while healthier populations are more productive and contribute more to GDP growth. Countries like Singapore, South Korea, and Vietnam have proven that sustained investment in human capital transforms economies. Nigeria’s continued underinvestment in people undermines its status as Africa’s largest economy and hinders its ability to compete globally.
There are signs of movement. In April 2025, Nigeria relaunched HCD 2.0, the second phase of its Human Capital Development strategy. Vice President Kashim Shettima set the ambition to reach a top 80 Human Capital Index ranking by 2030, pledging data-driven implementation at grassroots levels and the creation of a Human Capital Development Fund. State-level dashboards and local accelerator projects aim to improve accountability. Akwa Ibom State has exceeded national averages, with only 3.5 percent of primary-age children out of school compared to 25.6 percent nationally, and under-five mortality rates of 80 per 1,000 compared to the national average of 110, according to the Office of the President.
These measures are encouraging but insufficient. Achieving ambitious targets requires sustained investment across all stages of life, from early childhood education to healthcare, vocational training to mental health, workplace welfare to lifelong learning. Without this, Nigeria’s economic prospects will remain constrained by underdeveloped human potential.
Every sector must contribute. The Federal government must increase allocations to education and health beyond the historic 5 percent to 7 percent of national budgets to at least the 15 percent recommended by UNESCO. Recent figures show only 6.7 percent in 2020, 5.8 percent in 2021, and 7.9 percent in 2022. Employers must prioritise staff training, well-being, and innovation. International partners should provide not only funding but also technical expertise and targeted engagement aligned with national human capital goals.
Strategic partnerships are crucial. The World Bank has committed to renewed collaboration to support Nigeria’s human capital ambitions. Encouragingly, the government is already advancing initiatives like HOPE-EDU, HOPE-HEALTH, and HOPE-GOV, aimed at reforming education, improving healthcare, and strengthening governance. These programmes hold promise, but their success depends on strong implementation, adequate funding, and inclusive collaboration.
Nigeria stands at a defining moment. With one of the youngest populations in the world, the choice is clear: invest in people or risk worsening poverty and instability. Human capital is not optional. It is the foundation of national progress, productivity, and resilience. The time to act is now. Every delay costs the nation lives, skills, and the future it claims to seek.
Yemisi Fagbemi is a Chartered Director with the Chartered Institute of Directors Nigeria, recognized for her sound contributions in governance, ethical practices, and strategic leadership. She is a trusted voice in organisational transformation and human capital development, known for designing and executing initiatives that position businesses for global competitiveness and long-term value creation.
