Nigeria is currently on the brink of experiencing a population explosion, as projected by the United Nations, positioning the nation to become one of the world’s most populous countries by 2050. However, Nigeria faces the challenge of having a predominantly unproductive population that is growing at a rate faster than its national output. To enhance the standard of living for its citizens, it is imperative for economic growth to outpace population expansion. This way, each passing year brings the potential for greater contributions from its people. A burgeoning population can lead to the overuse of resources, a reduction in the average standard of living, and labor force congestion, all of which pose obstacles to development. The study spanned 32 years, utilizing time series data from 1990 to 2021, with information on HDI, population growth rate, FDI, and labor force participation rate sourced from the United Nations Human Development Report and the World Bank. The Augmented Dickey-Fuller (ADF) test was employed to assess the stationarity of the variables used, revealing that they were stationary at the first difference, indicating I(1). Consequently, the study employed the Vector Error Correction Model (VECM) technique for parameter estimation. The findings demonstrated a negative relationship between population growth and economic development, whereas foreign direct investment and labor force participation rate exhibited positive relationships with economic development. As a result, the study offers recommendations, including the need for policymakers in the health sector to intensify awareness efforts on family planning, especially in rural Nigeria. Additionally, promoting on-the-job training for workers, particularly the youth, is encouraged to develop skills, which, in turn, can boost production, wages, and the overall standard of living.
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To Cite this article
Binuyo, B. et al., (2022). The Effect of Rapid Population Growth on Economic Development in Nigeria. International Journal of Humanities, Arts and Social Sciences, 8(2), 21-29. doi: https://dx.doi.org/10.20469/ijhss.8.20003-2
