Human Resources as Propellant for Nigeria’s Economic Renaissance

As economies increasingly recognise human capital as the cornerstone of development, experts argue that Nigeria’s progress depends on how effectively it manages and maximises its workforce, writes Sunday Ehigiator

When Nigeria’s economy is discussed, the conversation often revolves around oil, infrastructure, and capital investment. Yet, beneath these dominant narratives lies a quieter but more powerful growth engine, human resources.

Experts say that without a strategic focus on human capital development and effective HR management, the nation’s dream of sustainable economic prosperity will remain elusive.

“Human resources is the real economy,” Human Capital Strategist, Della Ade-Aduke Adegbenro said.

She added: “It’s not just about people management within organisations; it’s about shaping the productivity, innovation, and competitiveness of the entire nation.”

The Missing Link in Nigeria’s Economic Equation

Nigeria, Africa’s largest economy by GDP, continues to grapple with sluggish productivity, high unemployment, and a mismatch between education and job market needs.

Despite significant investments in infrastructure and technology, the country’s Human Development Index (HDI) remains among the lowest in emerging economies.

According to the World Bank (2024), Nigeria’s human capital index is just 0.36, meaning a child born in the country today will be only 36 per cent as productive as they could be with full access to quality education and healthcare.

This gap, analysts argue, reflects a deeper problem: the undervaluation of human resources as a strategic growth driver. While financial and physical capital attract policy attention, HR, which determines how effectively human talent is mobilised and optimised, is often confined to administrative functions.

“We have treated HR as a support department rather than a policy instrument, but in a modern economy, human resources management is an essential lever for national competitiveness,” Adegbenro explained.

How HR Shapes Growth

At the organisational level, HR practices directly influence productivity and profitability. Global data from the World Economic Forum (2023) show that firms with structured employee development programs record 21 per cent higher profitability and 17 per cent greater productivity. In Nigeria’s private sector, companies that prioritise workforce planning and continuous learning have demonstrated stronger resilience amid economic instability.

Take the financial services industry, for instance. Institutions such as Access Bank and GTCO have invested heavily in employee training, leadership development, and performance analytics; strategies that have positioned them for global expansion and sustained profitability. These successes, Adegbenro noted, highlight how HR can serve as an “economic multiplier” when embedded strategically within business models.

According to her, “The microeconomic impact of HR translates into macroeconomic outcomes. Every time an organisation improves its talent management, enhances skills, or builds employee engagement, it contributes directly to national productivity and GDP growth.”

Human Capital as National Strategy

According to Adegbenro, “Globally, countries that have prioritised human capital, such as Singapore, South Korea, and the United Arab Emirates, have used HR-centric policies to accelerate development.

“Their approach links education, skills development, and workforce strategy into one continuous pipeline. In contrast, Nigeria’s workforce development remains fragmented between ministries, agencies, and private institutions, with little synergy between education outputs and labour market needs.

“The Organisation for Economic Co-operation and Development (OECD, 2022) found that a 10 per cent increase in national skills proficiency could raise a country’s GDP by 2 per cent over time. For Nigeria, this could translate into billions of dollars in additional output annually.

“Imagine if every Nigerian worker were 10 per cent more productive; the impact on GDP, innovation, and global competitiveness would be transformative.

“Yet, the country’s education-to-employment transition remains weak. While over 1.5 million graduates enter the labour market each year, many lack the digital, managerial, or problem-solving skills needed in modern industries. As a result, underemployment, not just unemployment, has become a defining feature of Nigeria’s economy.”

HR at the Policy Table: A Strategic Imperative

Adegbenro argued that Nigeria’s economic reforms must move beyond fiscal and monetary policies to include human resource strategy as a pillar of development planning. She believes HR professionals should be integral to policy formulation at both public and private levels.

“Economic diversification is impossible without human resource diversification. If we want to grow beyond oil, we must develop and manage talent across agriculture, manufacturing, technology, and services with the same rigour that we apply to capital allocation.

“This requires a shift from reactive to strategic HR leadership, one that anticipates workforce trends, designs future-ready skills frameworks, and aligns human capital with industrial policy. We need HR ministries or national human capital councils that drive talent strategy at scale.

“Countries like Singapore and Rwanda have already adopted such models, integrating human resource development into national economic planning. Singapore’s SkillsFuture initiative, for instance, offers citizens continuous reskilling opportunities linked to industry demands; an approach Nigeria could emulate through partnerships between the National Universities Commission (NUC), Industrial Training Fund (ITF), and the Nigeria Employers’ Consultative Association (NECA).”

Digital Transformation and the Future of Work

Adegbenro posited that the rapid adoption of artificial intelligence (AI), automation, and remote work has redefined the nature of employment globally.

“In Nigeria, digital industries, including fintech, health tech, and creative technology, have emerged as growth frontiers. But they also expose gaps in workforce readiness.”

According to a McKinsey & Company (2022) report, up to 30 per cent of current jobs in emerging markets could be automated by 2030. This presents both a threat and an opportunity for Nigeria.

“If we don’t reskill our workforce now, we’ll widen the unemployment gap,” Adegbenro warns. “But if we integrate HR-led digital training into national policy, we can become a hub for tech-enabled talent in Africa.

“Companies such as Andela, Flutterwave, and Interswitch demonstrate how HR-driven innovation can transform not only organisations but entire sectors. Their success stems from prioritising people; building inclusive work cultures, rewarding creativity, and investing in leadership development.”

HR’s Role in Sustainable Development

Nigeria’s National Development Plan (2021–2025) recognises human capital as a key pillar for achieving inclusive growth. Yet, implementation remains slow. Many industries still face acute skills shortages, especially in engineering, healthcare, and digital services.

Adegbenro emphasised that sustainable development cannot be achieved through infrastructure alone. “You can build roads, but you need people to maintain them. You can invest in technology, but you need skilled minds to operate it. That’s why human resources should sit at the heart of our development strategy.

“To close the gap, Nigeria must strengthen public-private partnerships in human capital development. For example, collaboration between the Lagos State Employment Trust Fund (LSETF) and private employers has successfully created targeted training programs for youth employment. Scaling such initiatives nationwide could help reduce the mismatch between education and labour demand.”

The HR Leadership Challenge

Despite growing recognition of HR’s strategic value, many Nigerian organisations still treat HR departments as administrative units focused on compliance and payroll. This perception limits their capacity to influence decision-making.

According to Adegbenro, “The HR leader of tomorrow must be a strategist, not a record keeper. They must understand data, business dynamics, and policy, and be able to connect workforce outcomes to national goals.

“This evolution demands investment in professional development for HR practitioners. Institutions such as the Chartered Institute of Personnel Management of Nigeria (CIPM) are already promoting global best practices through certification and research, but more is needed. We need a generation of HR leaders who think like economists and policymakers,” she adds.

The Overlooked Frontier

According to a report cited by Nigeria.shafaqna.com, Nigeria’s informal economy employs a very large portion of the workforce, with estimates ranging from over 60 per cent to over 90 per cent; from artisans and traders to small-scale manufacturers.

This sector, though largely unregulated, contributes nearly 50 per cent of GDP. However, it remains excluded from formal HR systems that could enhance productivity and social protection.

“Imagine if we applied basic HR principles, such as training, safety, and performance incentives, to our informal workforce,” Adegbenro suggests. “We could double their output and create more stable livelihoods.”

To achieve this, she advocates for policies that extend HR capacity-building to cooperatives, microbusinesses, and community enterprises.

“Initiatives like the SMEDAN Entrepreneurship Programme and the YouWin Connect scheme offer starting points, but scaling impact requires systematic HR integration at the grassroots level.”

The Gender and Youth Dividend

Nigeria’s demographic profile, with over 60 per cent of its population under 25, presents a potential ‘youth dividend’ if properly managed. However, gender inequality and limited access to quality jobs continue to hinder inclusion.

Adegbenro stresses that gender-sensitive HR policies are not just about fairness; they are economic necessities. “When you empower women and young people through equitable workplace policies, you expand the productive base of the economy,” she notes.

Organisations that promote flexible work, mentorship, and career advancement for women report higher retention and creativity rates. Similarly, integrating youth into decision-making roles enhances innovation. “Diversity is not a trend; it’s an economic strategy,” Adegbenro asserts.

Building the Workforce of the Future

The future of Nigeria’s economy will depend on how effectively it transforms its workforce into a skilled, motivated, and adaptable resource. This means moving beyond short-term employment schemes toward a comprehensive national human capital blueprint, one that aligns HR practices with industrial growth, digital innovation, and education reform.

As Adegbenro puts it: “The prosperity of nations in the 21st century will not be measured by what they extract from the ground, but by what they extract from the minds of their people.”

To unlock that potential, she suggests that Nigeria must “institutionalise HR-led policy frameworks at federal and state levels; strengthen skills-based education through collaboration between academia and industry; promote continuous learning using digital and vocational platforms, and empower HR professionals to drive national transformation, not just corporate compliance.”

The Human Economy Ahead

If Nigeria must diversify its economy and compete in a globalised world, the transformation must begin with people. Human resources, when viewed as a strategic national asset, hold the key to inclusive and sustainable growth.

The evidence is clear: nations that invest in their people outperform those that rely solely on natural resources. For Nigeria, the choice is not whether to prioritise HR; it is whether the country can afford not to.

“The real measure of progress,” Adegbenro concluded, “is how we develop and deploy our people. HR is not just an organisational function; it’s the hidden engine of our national prosperity.”