Government Spending on Education and Human Capital Development in Anambra State (2019 to 2024)

Investment in education is widely recognized as a foundational mechanism for building human capital and sustaining long-term economic development, yet the efficiency of such spending in Nigerian states continues to attract significant scrutiny. This study examines the impact of government spending on education on human capital development outcomes in Anambra State from 2019 to 2024. The study is theoretically anchored on the Human Capital Theory as expounded by Schultz and Becker, which posits that investment in education and training enhances individual productivity and aggregate economic growth. A longitudinal research design was adopted using secondary data obtained from the Anambra State Ministry of Education, the Universal Basic Education Commission (UBEC), and the National Bureau of Statistics. Cointegration analysis and Error Correction Model (ECM) techniques were employed to establish the long-run and short-run effects of education spending on human capital proxies, including school enrollment rates, literacy levels, and graduate employment rates. Findings reveal a significant positive long-run relationship between education expenditure and human capital development in Anambra State. However, a substantial portion of the education budget was absorbed by recurrent costs such as teacher salaries, with capital investment in school infrastructure remaining inadequate. The study concludes that the efficiency of education spending is as important as its volume in determining human capital outcomes. It is recommended that Anambra State diversify education financing and strengthen budget execution monitoring to ensure resources translate into tangible improvements in school quality and graduate outcomes.

Keywords: Education spending, human capital, Anambra State, economic development, school enrollment