CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
The researcher considers the relation that is established between education and economic growth in Nigeria. Education, as a key component of human capital formation is recognized as being vital in increasing the productive capacity of people. Education, especially at the higher level, contributes directly to economic growth by making individual workers more productive and leading to the creation of knowledge, ideas, and technological innovation (Odeleye, 2012).
The effect of education on technological innovation is direct following the Romer/Solow growth theory framework. An investment in education is beneficial to the society, both at micro and macro levels and affects the system both directly and indirectly. Education is basic to development and is also regarded as an instrument through which the society can be transformed. As a salient factor in transition programme, education equips human resources with the needed knowledge, skills and competencies, which would make them functional, and contribute to the all-round development of the nation. It does not only help to supply the essential human capital which is a necessary condition for sustainable economic growth but it is also a key to poverty reduction and a major vehicle for promoting equity, fairness and social justice (Todaro, 2007).
Education is seen here as representing one of the primary components of human capital formation, which is an important factor in modelling the endogenous growth. Human capital is essentially important in achieving a sustainable economic growth; however, the greatest contribution is accomplished through investment in the quality and quantity of education.
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