SOCIAL COST AND HUMAN CAPITAL DEVELOPMENT IN STATE-OWNED UNIVERSITIES IN OGUN STATE, NIGERIA

Abstract

Higher education plays an important role in economic growth, technological development, and social transformation in today’s global knowledge economy. This study examined the relationship between social cost and human capital development in state-owned universities in Ogun State, Nigeria. However, despite substantial government investment in salaries, research funding, infrastructure, and staff training, concerns remain about whether these expenditures translate into effective human capital development and institutional efficiency. The study adopted an ex-post facto research design and relied on secondary institutional data drawn from selected state-owned universities in Ogun State covering ten years (2015–2024). A panel dataset was developed using a purposive and census approach, focusing on available records of research funding, staff salaries, infrastructure, training, and graduate output. Data were collected using a structured extraction template. The instrument was validated by an expert in Educational Management using face and content validity to ensure its suitability and alignment with the study purpose. Reliability was established through a pilot test, and Cronbach’s Alpha yielded a coefficient of 0.90, indicating high internal consistency. Data were analysed using descriptive statistics and Pearson Product-Moment Correlation (PPMC), with the hypothesis tested at the 0.05 level of significance. Findings revealed a very strong positive and significant relationship between research funding and internal efficiency of human capital development (r = 0.904, p < 0.05). The result showed that increased investment in research funding enhances graduate turnout and institutional efficiency, although efficiency tends to fluctuate at higher funding levels, suggesting the influence of other qualitative factors. The study concludes that social cost, particularly research funding, and has a strong and significant influence on human capital development in state-owned universities in Ogun State. The study recommended that the government should increase and sustain funding for research activities in state-owned universities to strengthen human capital development.