PRODUCTIVITY, HUMAN CAPITAL DEVELOPMENT AND COVID-19 PANDEMIC IN NIGERIA

Abstract

The Covid-19 pandemic resulted in lockdowns, loss of productivity, and a decline in economic growth. Africa and indeed Nigeria were adversely affected due to a lack of mechanisms such as adequate investments in health and education, and the absence of fiscal stimulus such as social safety net programs to withstand the shock. This study seeks to examine the nature of the structural break in labour productivity in the aftermath of the Covid pandemic, particularly given investment in health and education. The data for the study which covers the period of 1991-2022 were obtained from the World Development Indicators and the Central Bank Statistical Bulletin of various years. The Chow test was used in this study to test for the presence of structural breaks in the productivity model. Findings from the estimation of the model reveal the presence of significant structural breaks due to the pandemic. This implies that the period of the Covid-19 pandemic significantly impacted the level of productivity within the economy measured by the output per worker. Findings also revealed that mobile subscriptions which allow access to the internet had a significant positive effect on productivity. Government spending on health and education did not have a significant impact on productivity before and after the pandemic.