AN EVALUATION OF THE IMPACT OF PRIVATE EDUCATIONAL SECTOR ON HUMAN CAPITAL DEVELOPMENT IN NIGERIA

CHAPTER ONE

INTRODUCTION

Background of the Study

Education is undoubtedly the catalyst that accelerates progress and fosters the creation of an egalitarian society free from poverty, unemployment, dissatisfaction, intercommunal conflicts, and other societal problems (Anya, 2020). It is also regarded as a perpetual way of life in our society. Whether intentional or accidental, acknowledged or overlooked, beneficial or detrimental. Education is essential for both personal growth and livelihood. Investing in people yields immeasurable benefits to society. However, when this investment is neglected or insufficient, society experiences a cost. According to Okoroma (2016), education is recognized as a crucial tool for enhancing the overall well-being and self-assurance of individuals in their pursuit of personal independence. Similarly, education is the primary method by which a society endeavours to control its own future and evolve from its current state to its desired state (Jeffery, 2019). The National Policy on Education invites people, organizations, voluntary agencies, and communities interested in establishing and overseeing pre-primary/primary/secondary schools to do so in addition to those already supplied by the government. The National Policy on Education (NPE 1981, 2004) states that education is the most powerful tool for achieving redress. It is also the most significant investment that the nation can make to expedite the growth of its economy, political system, sociological dynamics, and human capital. 

Human capital, as described by the OECD (2016), refers to the intellectual, professional, and personal attributes possessed by individuals that contribute to the creation of personal, societal, and economic prosperity. According to Folloni and Vittadini (2018), human capital can be defined by three dimensions: longevity and good health, education, and a satisfactory standard of living. The health component is determined by the life expectancy at birth, while the education dimension is determined by the average number of years of schooling for individuals aged 25 and above, as well as the predicted number of years of schooling for children starting school. Gross national income per capita is utilized to ascertain the quality of living. Furthermore, the attributes of human capital can be either inherent, acquired, or enhanced via education. The notion of human capital development is relatively new. During the course of economic development, it is typical that priority is given the accumulation of tangible assets. It is now well acknowledged that the development and effectiveness of physical assets are heavily reliant on the production of human capital, which involves enhancing the knowledge, skills, and abilities of individuals (Jhingan, 2017). The quality of input in the process of human capital formation, namely in tertiary education, directly influences the quality of human capital output and stock in the economy. This requires the presence of both public and private tertiary educational institutions. While, the government removed the prohibition on private universities, which resulted in the deregulation of the educational sector up to the tertiary level. The government is actively promoting private sector involvement in tertiary education to accommodate the high demand for admission into higher institutions and to produce well-educated graduates who can contribute significantly to the country's human capital. Therefore, a survey will be conducted in order to evaluate the impact of private educational sector on human capital development in Nigeria.

1.2 Statement of the Problem

In Nigeria, as well as in other African nations such as Egypt, Kenya, and South Africa, there are private educational institutions along with governmental ones. In 1999, Nigeria witnessed the complete involvement of the private sector in tertiary education for the first time. Subsequently, only a limited number of establishments in the industry have been producing graduates, thus enhancing the country's pool of human resources (Nwagwu, 2018). Currently, private tertiary institutions have a significant portion of students in the education industry. Beyond that, these institutions have been perceived as offering better quality education, characterized by improved facilities, better-qualified teachers, and more rigorous academic standards. The private sector's ability to attract investment, innovate, and respond to market demands has further cemented its role in Nigeria's education landscape.Furthermore, in 2008, the enrollment percentages for higher education in Nigeria were compared between public and private institutions. The private sector accounted for 19% of the total enrollment (Okebukola, 2019). It is worth mentioning that around 40% of the universities in Nigeria are privately held. Out of the total 102 universities, 41 are owned by individuals or companies. Additionally, private institutions often have more flexibility in their curricula, adopts international best practices, and are better positioned to integrate technology in education. These factors potentially make them key contributors to developing a skilled and knowledgeable workforce in Nigeria. On the contrast, private institutions face numerous regulatory challenges, including bureaucratic hurdles in registration and accreditation. Despite being better funded than public institutions, private schools rely heavily on tuition fees, which can make education expensive and limit access for lower-income families. Nevertheless, education is a crucial tool for identifying and analyzing a nation's resources, as well as finding answers to the issues and obstacles that affect people in all aspects of their lives. The quality of the human capital is a crucial aspect in the economic success of any country, including Nigeria.  Hence, it is in the light of these that the study seeks to evaluate the impact of private educational sector on human capital development in Nigeria.

 1.3  Objectives of the Study

The main purpose of this study is to evaluate the impact of private educational sector on human capital development in Nigeria. Specifically, the study will;

To assess the quality of education provided by private educational institutions in Nigeria.

To investigate the human capital outcomes of graduates from private educational institutions.

To identify the challenges faced by the private educational sector in Nigeria.

To provide policy recommendations to improve the contribution of private education to human capital development.

1.4  Research Questions

The following questions have been prepared for the study:

How is the quality of education provided by private educational institutions in Nigeria?

What are the human capital outcomes of graduates from private educational institutions?

What challenges are faced by the private educational sector in Nigeria?

What policy recommendations can be made to improve the contribution of private education to human capital development in Nigeria?

1.5 Research Hypotheses

H0: The private educational sector has no significant impact on human capital development in Nigeria.

Ha: The private educational sector has a significant impact on human capital development in Nigeria.

1.6 Significance of the Study

This study is crucial as it sheds light on the role of the private educational sector in developing Nigeria's human capital. The findings will enable policymakers, educators, and stakeholders to better comprehend how to utilize this sector for achieving national development goals. Also, the study will be vital in shaping future educational policies and investments, ensuring that both public and private educational sectors significantly contribute to Nigeria's growth and development. Moreover, subsequent researchers will use it as a literature review. This means that other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review. Invariably, the result of the study contributes immensely to the body of academic knowledge with regard to the impact of private educational sector on human capital development in Nigeria.

1.6 Scope of the study   

The scope of this study is boarded on the impact of private educational sector on human capital development in Nigeria. Empirically, this study will assess the quality of education provided by private educational institutions, investigate the human capital outcomes of graduates from private educational institutions, identify the challenges faced by the private educational sector and provide policy recommendations to improve the contribution of private education to human capital development.

Geographically, the study will be delimited to some selected private universities in Lagos state.

1.7 Limitation of the study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed. More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.

 1.9 Definition of Terms

Private Educational Sector: Institutions providing educational services at primary, secondary, and tertiary levels that are owned, funded, and managed by private individuals, organizations, or corporations, rather than by the government.

Human Capital Development: The process of improving the economic value of individuals through education, training, health, and other means, resulting in a more skilled, knowledgeable, and productive workforce.